Fitment Factor- This is the formula by which the salary of central employees increased more than two and a half times. The salary calculation and pay matrix are fixed.
7th Pay Commission: Central employees will get good salary after June 1. From July 1, 2021, the dearness allowance will be reduced from 17 percent to 28 percent. Central employees and pensioners will get the benefit of increased salary and pension. The fitment factor is the most discussed among the central employees since the 7th Pay Commission came into force. Actually, the minimum salary of central employees has increased due to the fitment factor. This is the formula by which the salary of central employees increased more than two and a half times. Under the Seventh Pay Commission (7th Pay Commission), information about salary calculation and pay-matrix will be given.
7th Pay Commission: Central employees will get good salary after June 1. From July 1, 2021, the dearness allowance will be reduced from 17 percent to 28 percent. Central employees and pensioners will get the benefit of increased salary and pension. The fitment factor is the most discussed among the central employees since the 7th Pay Commission came into force. Actually, the minimum salary of central employees has increased due to the fitment factor. This is the formula by which the salary of central employees increased more than two and a half times. Under the Seventh Pay Commission (7th Pay Commission), information about salary calculation and pay-matrix will be given.
How to calculate dearness allowance
After deciding the salary, the number to decide the allowance comes. This includes DA, TA, HRA, medical reimbursement. Dearness Allowance for central employees is given to protect against inflation. It is fixed twice a year. The first time during January to June and the second time for the period from July to December. The government averages the inflation of the first 6 months of the year. After that it takes the average of inflation in the second half. DA is decided on the basis of this.
Currently, the average inflation rate for July-December 2020 (according to AICPI) is 3.5%. Therefore, it is being estimated that the dearness allowance for the period from January to June 2021 will be at least 4 percent. Once DA is announced, TA increases on the same basis. Hence the increase in DA is also linked to TA. Similarly, HRA and medical reimbursement are also decided. When all allowances are calculated then the monthly CTC of the central employee is fixed.
PF, contribution of gratuity
From July 1, the benefit of increasing dearness allowance will be given to 52 lakh central employees and more than 60 lakh pensioners. Also, keep in mind that with increasing basic salary, the amount of EPF and gratuity will also increase. EPF constitutes 12 per cent of basic salary and dearness allowance.
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