Fitment Factor Hike 2023: Government can soon give good news of increase in salary of central employees! The government may decide to increase Dearness Allowance and Fitment Factor. If there is an increase in the fitment factor, then the minimum basic pay of central employees will increase from Rs 18,000 to Rs 26,000. Every year, the central government gives dearness allowance to its employees twice a year to meet the rising inflation (DA Hike).
Fitment Factor Hike 2023
If nothing goes wrong, the central government can increase the Dearness Allowance by up to 4 percent from July 1. After this increase, DA will increase from 42 percent to 46 percent. If the report of All India Consumer Price Index is to be believed then the government may announce DA Hike in July.
Dearness Allowance was last increased in March
The central government last increased DA in March. However, the increased DA in March will be added from January 1, 2023! Considering the 4 percent increase (DA Hike), if your minimum basic salary is Rs 18,000, then every month from July it will get Rs 720 more! On adding on an annual basis, you will get an increase of Rs 8640 in Dearness Allowance!
Fitment Factor – Hike
Apart from DA, this time the government can also increase the fitment factor (DA Hike). At present the fitment factor is 2.57. Let us tell you that the government uses the fitment factor to calculate the salary of the employees. Government can increase this fitment factor from 2.57 to 3.68. Dearness Allowance plays an important role for the employees.
How is DA hike calculated?
The Central Government calculates DA and DR on the basis of a fixed formula.
- Dearness Allowance Percentage = ((Average of All India Consumer Price Index numbers for last 12 months (Base year 2001=100) -115.76)/115.76)x100
- For Central Employees: Dearness Allowance Percentage = ((Average of All India Consumer Price Index numbers for last 3 months (Base year 2001=100) -126.33)/126.33)x100
Latest Updates on Fitment Factor
A big announcement is going to be made soon in the fitment factor of the central employees, after which there will be a bumper increase in the basic salary. It is believed that the government can increase the fitment factor from 2.60 times to 3 times, due to which there will be a record increase in salary (DA Hike). According to the calculation, the basic salary will be 18,000 to 26 thousand rupees. Along with this, your Dearness Allowance will also increase!
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The post Fitment Factor Hike 2023: Along with DA, the government may also increase the Fitment Factor, may be announced this month appeared first on SRB Post.