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7th Pay Commission: Central Govt to Announce DA Hike of Govt Employees on This Day

7th Pay Commission: DA would reportedly be increased from the current 38% to 42% after Holi, according to the current fitment factor.

Binita Kumari
The central government employees are now demanding a 3.68 increase in the fitment factor
The central government employees are now demanding a 3.68 increase in the fitment factor

After March 8, the Center intends to update the DA and fitting factor, according to a story in the Economic Times. A worker earning Rs 15,500 in 4200 Grade Pay would receive a total salary of Rs 39, 835 if they multiplied their pay by the current common fitment factor of 2.57%, according to the 6th Central Pay Commission.

The fitting ratio was previously proposed by the 6th Pay Commission to be 1.86%, whereas the 7th CPC recommended 2.57%, which is the current fitment ratio for Central Government workers. But the central government employees are now demanding a 3.68 increase in the fitment factor. If their demand is granted, the current minimum pay of Rs 18,000 will rise to Rs 26,000 as a result.

Shiva Gopal Mishra, general secretary of the All-India Railwaymen Federation, told PTI, "The CPI-IW for December 2022 was announced on January 31, 2023. The increase in the dearness allowance amounts to 4.23 percent. DA increases above the decimal point are not taken into account by the government. Thus, it is anticipated that DA will rise by four points to 42%.

He continued by saying that the Finance Ministry's spending division will draught a proposal to increase DA along with the income implications and submit it for approval to the Union Cabinet.

Salary Calculation After DA hike:

Employees of the central government are subject to the following calculation for their DA: (Average of the All-India Consumer Price Index (Base year - 2001 = 100) for the previous 12 months -115.76)/115.76 x 100.

The DA is determined by multiplying the average of the All-India Consumer Price Index (the base year 2001 = 100) for the most recent three months by 126.33, multiplied by 100 for central public sector employees.

It is significant to highlight that employees' dearness allowance on their income would increase if DA is raised from 38 to 42 percent. Importantly, DA varies according to an employee's rank in the pay matrix.

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