The central government is considering an important decision that could benefit all of its employees.
According to sources, an announcement regarding the increase in Dearness Allowance (DA) for the second half of 2023 may be imminent.
Moreover, along with the DA hike, there are indications that the government might also raise the fitment factor.
Although no official confirmation has been provided, if the fitment factor is indeed increased, it could lead to a significant rise in the basic salary of employees.
Demand to Increase the Fitment Factor
Currently, central government employees have a fitment factor of 2.57 percent.
However, employees are demanding an increase to 3.68 percent.
To put this into perspective, an employee with a grade pay of Rs 4200 currently receives a basic salary of Rs 15,500.
With the existing fitment factor, the total salary amounts to Rs 39,835.
If the fitment factor is increased as per the employees’ request, the minimum wage for central government employees could rise from Rs 18,000 to Rs 26,000.
Recent Increases in DA and Future Salary Implications
During the first half of this year, the government raised DA and DR by four percent, taking it from 38 percent to 42 percent.
If the same four percent increase is implemented for the second half, the DA would further rise to 46 percent.
Last year, in March 2022, employee DA saw a three percent increase, taking it from 31 percent to 34 percent. Subsequently, there were two four percent increments.
Projected Salary Increase with Higher DA
A significant question arises regarding the impact of a DA increase to 46 percent on employees’ salaries.
To understand this, let’s consider an example. Suppose a central government employee has a basic pay of Rs 18,000.
Currently, they receive a DA of Rs 7,560 at 42 percent. If the DA is increased to 46 percent, their DA will amount to Rs 8,280.
Consequently, the worker’s salary would see a monthly increase of Rs 720.
Our Thought
The hike in Dearness Allowance is pending from long time. The last revision in DA was done in March. it was only raised by 4 per cent and became effective from January 1, 2023.
After the last hike, the DA of central government employees increased to 42 per cent. But now the further increment is required. If the government raises DA by only 4 per cent then total DA will reach to 46%.
This will be a very good news for central government employees.
Are you also waiting for DA hike? Let us know in comments below.
