Latest news on Fitment Factor for Central Government Employee

Latest news on fitment factor for central government employees

This blog is to provide the latest news on fitment factor for central government employees. It is a factor that multiplies the basic pay to increase the sum amount of an employee’s salary. This is to provide financial stability among government employees in time of inflation. CPC will take the decisions upon fitment factor. CPC stands as central pay commission. It has the power to decide the pay scale along with pensions among government employees. For, both central and state working and retired government employees. It is to provide along with the hikes and allowances (DA, HRA & VA). pay scales will change for every 10 years to central government employees. And for every 5 years for state government employees as well. New sum of emoluments that adds fitment and DA together along with other allowances. They will provide interim relief if in case PRC (pay receive commission) fails or delays to pay the new monetary sum. It’s just a compensation provided instead of actual pay scale in such situations. IR becomes invalidate once the provided pay scale comes into existence. It increases the actual amount of basic salary of government employees. 

Fitment factor news 2022 :

Government employees were in dilemma upon the government’s decision for revising pay structure. Recently a piece of good news got flashed upon the fitment factor increment. Government employees are now receiving pay structure under 2.57% fitment factor. The government employees receives the pay structure under 7th central pay commission. Now there is an increase up to 3.68%. It counts Rs.8000/- in monetary sum. The committee formed in 2016 had given its recommendations stating that pay hike is Rs.18000/-. As central government employee receives minimum basic pay of 18000/- and not brought any relief to employees and pensioners. Now the demand is that it increases to Rs.26000/-. Resulting in an increase of gross monetary sum of a government employee. 

Latest update in 7th CPC :

The government would have rise the factor up to 3.68%. Government is looking forward to the approval of a pay panel for the pay hike. So that salaries and pensions of government employees will go up. Finance minister will announce once an official report got approved through the national committee. Over, 52 lakh central government employees were under 7th CPC fitment factor. Enhancement of 8000 rupees upon basic pay will bring an enormous change in gross pay structure. It’s likely to be increased in January 2023. The discussions got skyrocketed as people got to know it’s going to hike about 3.68%. The government of India decided it. Still needs to finalize to amend the bill. 

Fitment factor for pensioners :

The present good news for the central government employees is the hike in minimum basic pay. Over, 50 lakh government employees are eagerly waiting for this pay hike. But some doubts got raised against would pensioners be eligible for rise in fitment factor. Government bodies state that pay hike would mean upgrade along with fitment factor. It applies for both the working employees and pensioners as well. This news would be a greater relief for the pensioners who got retired under central government. The finance minister has assured the pay hike for both working government employees and pensioners. 

Fitment factor calculator :

We will let you know how to calculate the pay hike along with your provided basic pay. For that, let us take a look at the following example. 

Let us consider the basic pay of person A is Rs. 20000/-. Present factor 2.57%. And calculate the amount for three consecutive years as follows. 

Basic pay on 01/01/2020 = 20000*2.57 
= Rs.51400/-

The total emoluments received in 2020 is Rs. 51400/- along with pay hike and allowances.

Basic pay on 01/01/2021 = 51400 + 51400* 3/100

= 51400 + 1542
= Rs. 52942/-     

The total emoluments received in 2021 is Rs. 52942/- along with pay hike upon previous year pay and allowances.  

Basic pay on 01/01/2022 = 52942 + 52942*3/100

= 52942 + 1588.26

= Rs. 54530.26/-
along with pay hike upon previous year pay and allowances.  

The total emoluments received in 2022 is Rs. 54530.26/-

Now lets just understand the current percentage of 2.57. This is the basic overview of pay hike factor. It states how the pay panel commission decides upon providing the exact figure of pay scale. And how fitment factor calculated under 7th pay commission. If a person is earning a basic pay of 100% then it is considered as 1.00. Dearness allowances provided is 125% = 1.25. Total basic pay and DA = 2.25 and 14.29 has been increased under 7th pay commission rule upon total basic pay + DA. Adding all those decimal factors provides the present provided pay hike of 2.57.

Conclusion :

Finance minister had made recommendations upon pay hike but not yet amended. But assured to provide good news for government employees and pensioners. Will update you soon regarding this information. We intended to provide the latest news on fitment factor for central government employees. Hope you got knowledge regarding the pay hike 2022. Follow our blog posts for more news and updates regarding central government employees and government policies. Thank you. 

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