Lakhs of central government employees received a major hike in salary after the Modi government hiked the Dearness Allowance (DA) from 17% to 28%. Now, they are likely to hear some good news this New Year as the government is reportedly mulling over a hike in the fitment factor of their pay band.
As per reports by Zee Business, the central government is likely to announce an increase in the fitment factor of the employees which will, in turn, take the minimum wages of central employees up.
Notably, the central government employees unions have long been demanding for hiking the minimum pay of Rs 18,000 to Rs 26,000 and fitment factor be raised from 2.57 times to 3.68 times.
Sources cited by Zee Business have claimed that the fitment factor of central employees might be decided before the Union Budget is presented next year. As per the report, the Union Cabinet may approve the hike on the fitment factor, and it is likely to be included in the expenditure of the budget.
At present, the employees are receiving their salaries under the fitment factor at 2.57 per cent. If hiked to 3.68 per cent, there will be a minimum increase of Rs 8,000 in the salary, meaning that the minimum pay will be hiked from Rs 18,000 to Rs 26,000.
Additionally, the DA is also expected to increase once again in January 2022, although it is yet to be decided how much the dearness allowance will be hiked.
At the same time, promotions are also to be done in some departments of the centre by the end of December 2021. Apart from this, a decision can also be taken regarding the fitment factor before Budget 2022. If this happens, then the minimum basic salary will also increase. But, at present, the data of the AICPI index regarding dearness allowance has been guessed.