Salary may be hiked for Central govt staff, CTG cap removed for retiring staff

The increment may be announced before January 26

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This New Year, Central government employees may receive a salary hike. If all goes well, as per media reports, an increment may be announced for staff of the Central government, by Republic Day, that is, January 26. This is because of an increment is being planned in the fitment factor, which will, in turn hike the minimum wages.

Employees have been seeking an increment in the minimum wage for some time now. The minimum wage was Rs 18,000 and Central government employees’ unions have been demanding that this amount be raised to Rs 26,000 and that the fitment factor be revised to 3.68 per cent. Presently fitment factor is calculated at 2.57 per cent. If a decision is taken on the issue, a basic salary hike is inevitable, by Rs 8,000.

That is not all. The Central government will also eliminate the limit on the Composite Transfer Grant (CTG) given to employees who settle down at their last location of work post retirement, or within 20 kilometres radius of the last posting. Earlier, one-third of CTG was allowed in such cases, provided the concerned retiree actually shifted to another house.

Now, retiring staff can claim full CTG, which is 80 per cent of the basic pay, as on the last month of working, to set up residence at the last location of duty or to relocate to any location other than the last posting. However, employees posted in Andaman & Nicobar or Lakshadweep are allowed 100 per cent of their basic pay as CTG to help relocate post retirement.

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