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Hike In DA (Dearness Allowance) For Government Employees Likely In July

Hike In DA (Dearness Allowance) For Government Employees Likely In July

DA as well as basic pay may also rise for Central Government employees in July

Government employees may soon get a revised dearness allowance (DA) next month, i.e. in July 2022. The DA is revised twice a year – in January and in July.

In addition, government employees this time around will also get a hike in their basic pay with the fitment factor.

The DA amount for July 2022 may see a significant enhancement as the Dearness Allowance amount, which was stopped for one-and-a-half years by the government due to the coronavirus pandemic.

The Finance Ministry had stopped the DA hike from January 2020 until June 30, 2021, due to the Pandemic. The DA hike restarted in July last year.

Meanwhile, according to reports, Government may also soon approve a hike in the fitment factor.

Employees’ unions have long been demanding that the fitment factor be increased from 2.57 times to 3.68 times.

If this demand of theirs is accepted, then the minimum wage or basic pay of Central Government employees will also increase from Rs 18,000 to Rs 26,000.

Earlier the Government had increased the salary at the entry-level in 2017. At that time, the basic salary had been hiked from Rs 7,000 to Rs 18,000.

So if the fitment factor is hiked, Central Government employees may also get a hike in their basic pay in July along with an enhanced DA.

What is the fitment factor?

Fitment factor is a figure used by the 7th Central Pay Commission (CPC) with which the basic pay in the 6th Central Pay Commission regime (Pay in Pay band + Grade pay) is multiplied to fix basic pay in the revised pay structure (7th CPC).

The fitment factor formulated by the 7th Central Pay Commission is 2.57.

Quantum of increase expected after fitment factor hike

If the fitment factor is increased, then the employees’ salary can go up significantly.

Let us take an example to illustrate this. Suppose the Government increased the fitment factor to 3.68 times as per the demand; the employees’ minimum wage will be Rs 26,000.

After adding all the allowances on the basic pay of Rs 18,000, as per the 2.57 fitment factor (18,000 * 2.57 = Rs 46,260), the salary will go up to Rs 46,260. If the fitment factor is 3.68, then the salary will rise to Rs 95,680 (26,000 * 3.68 = Rs 95,680).

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