If the basic salary of an employee is Rs 18,000, then excluding allowances, his salary will be 18,000 X 2.57 = Rs 46,260. On being 3.68, the salary will be Rs 95,680 (26000 X 3.68 = 95,680) i.e. there will be a profit of Rs 49,420 in salary.
Central Employee Salary/DA Hike: Before the upcoming elections, central employees and pensioners can get many good news together. On the one hand, the dearness allowance of the employees-pensioners is expected to increase by 4 percent in July, its benefit will be given to 48 lakh employees and 69 lakh pensioners of the country. On the other hand, revision in the rates of fitment factor can also be considered. Apart from this, there may be an increase in other allowances including house rent allowance, travel allowance. Here, before the elections, the stir has again intensified regarding the outstanding DA arrears of 18 months.
According to media reports, the DA of central employees and pensioners may again increase by 4 percent in July. This estimate has been made from the data of AICPI index released till March. At present employees are getting 42% DA, if 3% DA increases in July then total DA will be 45% and if 4% increase DA will be 46%. The new rates may come into effect from July 1, 2023, although it has not yet been officially confirmed that how much DA will increase and when it will be announced. Since the figures from April to June are yet to come, after which it will be final that DA will increase in July.
Will there be a second hike in July?
This will be the second hike of the year. Since the DA of the employees increases twice a year in January and July. The 4% hike for January 2023 has already happened and is yet to happen for July, depending on the half-yearly figures of the AICPI index. The Labor Ministry has so far released the figures for January-February and March and now the figures for April are to be released at the end of May. This will indicate how much DA will increase in July. After this the CPI-IW numbers of May and June will also be added and the final DA/DR will be decided. If the index number reaches above 132.7 then the DA is set to increase by 4 per cent in July.
Revision of fitment factor rates possible
According to the media reports, apart from the DA increase, the rates of fitment factor can also be revised once again before the upcoming elections, currently the fitment factor of central employees is 2.57 and salary is being given on this basis under the 7th pay scale. , But on the demand of the employees, it can be increased to 3.00 or 3.68 percent, after which the minimum salary will be Rs.26000. More than 52 lakh employees will get its benefit. Although the official confirmation is yet to be done, till now no statement has come from the government in this regard.
Salary will increase up to 96000
According to media reports, before the upcoming elections, the Modi government may take a decision on increasing the fitment factor. Since elections are to be held in 2024, the fitment factor can be implemented from 2026, which will increase the salary by two and a half times. If the basic salary of an employee is Rs 18,000, then excluding allowances, his salary will be 18,000 X 2.57 = Rs 46,260. On being 3.68, the salary will be Rs 95,680 (26000 X 3.68 = 95,680) i.e. there will be a profit of Rs 49,420 in salary. After 3 times, the salary will be 21000 X 3 = Rs 63,000. Last time it was increased in 2016 and from this year 7th pay commission was also implemented and the minimum salary of the employees was directly increased from Rs 6000 to Rs 18,000.
Possible increase in HRA
According to media reports, the next revision in house rent allowance along with dearness allowance may be up to 3%. Thereafter the maximum HRA will increase to 30% from the existing rate of 27%. But this will happen only when DA crosses 50%. According to the memorandum of the Finance Department, HRA will be 30%, 20% and 10% when DA crosses 50%. The category of house rent allowance is according to X, Y and Z class cities. The central employees who fall in the X category are getting 27% HRA, which will be 30% if the DA is 50%. For Y class it will increase from 18% to 20%. For Z class people, it will increase from 9% to 10%.
Update on 18 Months DA Arrears
Before the upcoming elections, the stir has also intensified once again regarding the outstanding DA arrears of 18 months (from January 2020 to June 2021). Senior member of ‘National Joint Council of Action’ (NJCA) and General Secretary of All India Defense Employees Federation (AIDEF) C. Sreekumar has again written a letter to the Central Government.
He says that now OPS will also fight for payment of DA/DR for 18 months along with the demand for reinstatement. The National Council of Staff Side’ (JCM) has written to the Cabinet Secretary for payment of DA arrears of 18 months. A report has also been given to the Ministry of Finance. In this regard, the central government has also cited the decision of the Supreme Court. Now it has to be seen what decision the government takes on this.