The government is going to increase the dearness allowance of central government employees from July 1. How is their salary calculated? Know here.
Finally, there is good news for lakhs of Central Government employees as under the 7th Pay Commission, the government is going to increase the dearness allowance (DA) of employees from July 1, 2021. It is expected that the government will also increase the dearness allowance from 17 percent to 28 percent from July 1.
But, how is the salary of central government employees decided? Know here.
1. Fitment factor
In 7th Pay Commission, the fitment factor is used to decide the salary of central employees. The salary of central employees has increased by more than 2.5 times, due to the use of the fitment factor.
2. What is fitment factor?
Currently, the fitment factor of central employees is 2.57. The basic salary is calculated by multiplying it by 2.57 which is in addition to allowances like Dearness Allowance (DA), Traveling Allowance (TA), House Rent Allowance (HRA).For example: If the basic salary of an employee is Rs 18,000, then his salary excluding allowances will be 18,000 X 2.57 = Rs 46,260.
3. How is Dearness Allowance (DA) calculated
After the salary is fixed, allowances like DA, TA, HRA, Medical reimbursement are decided. Dearness Allowance(DA) is fixed twice a year, i.e. from January to June and then from July to December.DA is decided on the basis of average inflation in 6 months.
4. Increase in Travel Allowance (TA)
The increase in DA is linked to TA. Once DA is announced, TA increases on the same basis. The monthly CTC of the central employee is fixed after calculation of all the allowances.
5. Increase in PF, Gratuity
