Will DA, fitment factor be revised for Central government staff?

With the Union Cabinet having given its approval, by 31 March 2023, the dearness allowance may be hiked to 42% from the present 38%

Gratuity to be paid on termination of employment only after 5 years of service

Will the dearness allowance of Central government employees be hiked to 42 per cent from the present 38 per cent? Media reports suggest that the Government is considering revising the dearness allowance (DA) and fitment factor by 31 March 2023. The Union Cabinet has reportedly approved the grant of an additional instalment of DA and dearness relief (DR) to Central government staff and pensioners, respectively.

If the increment as per the 7th Pay Commission is implemented, the minimum salary of Central government employees will rise to Rs 26,000 from the earlier Rs 18,000.

The DA and DR are revised every six months to help employees and pensioners cope with the inflation. In other words, the revision happens twice in a year

This revision is done based on the latest Consumer Price Index for Industrial Workers (CPI-IW), which the Labour Bureau releases every month.

Meanwhile, at the state government level, the Government of Rajasthan has recently announced a four per cent hike in the DA of its employees and pensioners. That means, the state government staff of Rajasthan — numbering about eight lakh — as well as four lakh pensioners, will receive 42 per cent DA, with effect from 1 January, 2023, compared to the 38 per cent DA they were receiving till now.

The hike will also benefit the employees of the Panchayat Samiti and Zila Parishad.

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