When the 7th CPC (Central Pay commission) was implemented in 2016, it was made sure that a central government employee’s basic salary won’t be less than 50 per cent of net pay. As per the seventh pay commission recommendations, the rate of annual increment is being held at 3 per cent. However, when it comes to a central government servant’s (CGS) monthly salary calculation, 7th CPC fitment factor comes into play that has a huge role in one’s salary calculation.
7th CPC Salary: Fitment factor As per the 7th Pay Commission salary, one’s fitment factor is 2.57. A central government employee’s basic salary is multiplied by this 7th pay commission fitment factor, which decides a CGS monthly salary other than allowance. For example, if a central government employee’s basic salary per month is Rs 20,000, in that case the central government servant’s monthly salary other than allowance will be Rs 51,400.
Seventh Pay Commission Allowance As a central government employee gets various 7th CPC perks in the form of allowances like Dearness Allowance (DA), House Rent Allowance (HRA), Travel Allowance (TA), medical reimbursement, etc. The DA given to a central government employee under 7th Pay Commission norms is a hedge against inflation. In this allowance, Center makes an average of the net inflation for the first six month of a year and the last six month of a particular year. Then it goes forward and gives at least the next round figure of the average inflation number as DA. For example, if the average inflation is 3.5 for July to December, then the Center will announce at least 4 per cent DA for the central government employees.
Similarly, there are various other allowances like TA, HRA, medical reimbursement, etc. After adding all these allowances and the salary after multiplying with the fitment factor and basic salary, a central government employee’s monthly salary is decided. Generally, the net salary of a central government employee is around double of the basic salary multiplied with the fitment factor.