New Delhi, Mar, 23: 7th Pay Commission Update: The financial year 2021-22 is almost coming to an end on March 31st and the central government employees who have been waiting for the fitment factor hike can expect to hear good news soon. If the fitment factor increases, the basic salary of the employees is bound to increase too.
Fitment Factor to increase from 2.75 to 3.68:
According to multiple media sources, the government may shortly approve to raise the fitment factor. The central government employees’ unions have long demanded that the basic salary be increased from Rs 18,000 to Rs 26,000 and that the fitment factor be increased from 2.57 to 3.68.
If the government announces a raise in the fitment factor for central government employees, their salaries will rise as a result. Employees presently receive salary based on a fitment factor of 2.57 percent, which, if increased to 3.68 percent, would result in an increase of Rs 8,000 in the basic salary.
This means that central government employees’ minimum wage would be increased from Rs 18,000 to Rs 26,000 per month.
Check out this hypothetical pay calculation following the 7th pay commission’s increase in the fitment factor.
Employees’ basic wage will increase to Rs 26,000 if the fitment factor is increased to 3.68. According to the 2.57 fitment factor, if your minimum salary is Rs 18,000, you will receive Rs 46,260 (Rs 18,000 X 2.57 = 46,260) without allowances.
Now, if the fitment factor is 3.68, then your salary will be Rs 95,680 (26000X3.68 = 95,680).
This means the salary of the central govt employees will increase by Rs 49,420 (95,680 – 46,260).
The Union Cabinet had in June 2017 approved recommendations of the 7th Pay Commission with 34 modifications.
The new scales of pay provided for entry-level basic pay going up from Rs 7,000 per month to Rs 18,000, while at the highest level i.e., Secretary, went up from Rs 90,000 to Rs 2.5 lakh. For Class 1 officers, the starting salary was at Rs 56,100.
