7th Pay Commission: After DA bonanza, central government employees set to get basic salary increment, to receive Rs 12,604 more in salary

7th pay commission latest news: Central government employees can get noted benefits in the upcoming year as discussions have started regarding the revision of their basic salary.

The government is set to scrap the pay commission in upcoming years and is about to introduce a new formula for salary calculations.

The new change will permit the employees to change their fitment factor. Once done, the change in fitment factor can boost the employees' salaries considerably.

Central government employees have long been demanding that their fitment factors be reviewed.

According to sources, the centre can review the fitment factor and increase it. The current fitment factor is 2.57 times.

What is the expected increment in the fitment factor?

There are two views regarding the increment in the fitment factor.

The first view advocates increasing the fitment factor from 2.57 to 3.

After its implementation, central government employees will get an added benefit of Rs 3,000 in their basic salaries.

As per the second view, the Seventh Pay Commission's recommendations of an increment of 3.68 in the fitment factor should be implemented.

Once it comes into effect, the difference in the old and the new salary of an employee will be Rs 8,000.

The calculation of the fitment factor is based on the pay band.     

7th Pay Commission Fitment Factor

The fitment factor was introduced to ascertain the basic salary of central government employees.

As per the recommendations of the Sixth Pay Commission, the fitment ratio was 1.86.

But once the Seventh Pay Commission came into existence, employees from all pay bands will start getting the fitment benefit of 2.57 times.

The Pay Commission had recommended this change. 

How is the fitment factor calculated in the 7th CPC?

Assume that the basic pay till 31.12.2022 (100%)= 1

Dearance allowance 31.12.2022 (125%)= 1.25

Total (basic salary+DA)= 2.25

In 7th CPC, the recommendation was to increase 14.29% on the total of Basix Pay+DA)

Fitment factor = 2.57%

How is salary determined through the fitment factor? 

What will be the basic salary once the fitment factor is increased?

Employees will get a salary increment of Rs 12,604

The salary for all pay bands will be revised after the change in the fitment factor.

After the revision, the difference between the new and old salaries will be quite evident.

In the above-mentioned tables, we have calculated and shown how the salary will be increased.

In the first table, the fitment factor is 2.57, while in another table, the estimated increment is 3.68%.

If we see a pay grade of Rs 2,800, the difference between the new and old salaries will be Rs 12,604.

It means the new salary will be Rs. 41,804.