7th Pay Commission: Centre may finalise on basic hike, DA arrears soon, check latest update

New Delhi: In what could be good news under the 7th Pay Commission, the Central government could soon announce an increase in the fitment factor of central and state employees, according to media reports. 

The hike in the fitment factor will lead to an increase in the minimum wages of central employees. The demand to increase the fitment factor be raised from 2.57 times to 3.68 times has been put forward by several central government employees unions. 

The unions have also been demanding a hike in the minimum pay from Rs 18,000 to Rs 26,000. Reports have pointed out that the decision on the fitment factor could be taken soon by the government. 

With an increase in the fitment factor, the minimum wage will of the government employees also increase. Currently, the employees are receiving their salaries under the fitment factor on the basis of 2.57 per cent. If the fitment factor is increased to 3.68 per cent, the minimum salary of the government employees will increase by Rs 8,000 from Rs 18,000 to Rs 26,000.

Moreover, if the government increases the basic pay to Rs 26,000, there will be a substantial hike in dearness allowance as well. Currently, DA is paid at 31% of the basic pay. So, if the basic pay increases, the DA of the government employees will also rise automatically.  

Employees to receive 18-months DA arrears in one go?

Besides the hike in fitment factor, reports have also pointed out that the government is soon expected to discuss the matter of the pending DA arrears. If reports are to be true, then the government could finalise the decision in the coming weeks. Also Read: Apple 2022 spring event might be held on March 8, iPhone SE launch expected

If the government decides to pay the DA arrears in one go, several employees could receive up to Rs 2 lakh in their bank accounts. Also Read: Digital Rupee could debut by early 2023: Report