7th Pay Commission: Finance Minister Nirmala Sitharaman will present the budget on February 1. This time government employees have high expectations from the budget. It is expected that a decision on fitment factor may also be taken in Budget 2024. Once approved by the Cabinet, it will be included in the budget expenditure.
Finance Minister Nirmala Sitharaman will present the budget on 1 February 2024. Everyone is expecting from the budget that it will boost the economy and increase the money coming into the hands of common people. This time government employees have high expectations from the budget. Government employees have been demanding for a long time to increase the fitment factor. This time the expectation of its increase is the highest in the budget.
Elections are going to be held in the country in April-May this year. The budget to be presented on February 1 is an interim budget to be presented before the elections. In such a situation, it has to be seen whether before the elections the government will give the gift of a bumper increase in salary to the central government employees.
What is fitment factor?
It is expected that a decision on fitment factor may also be taken in Budget 2024. Once approved by the cabinet, it will be included in the budget expenditure. If the central government increases the fitment factor, the salaries of central employees will automatically increase. The fitment factor decides the basic salary for all central government employees. Allowances are also decided on the basis of basic salary.
The salary of government employees will increase by this much-
The fitment factor was last increased in 2016, with the minimum basic pay of employees increasing from Rs 6,000 to Rs 18,000. The possible increase in fitment factor could take the minimum basic pay to Rs 26,000. Currently the minimum basic salary is Rs 18,000, which will increase to Rs 26,000. That is, the basic salary will increase by a minimum of Rs 8,000.
Dearness allowance will increase-
If basic pay increases from Rs 18,000 to Rs 26,000, dearness allowance will also increase. Dearness Allowance (DA) is equal to 46 percent of the basic salary. DA is calculated by multiplying the DA rate by the basic pay. That means, with increase in basic salary, dearness allowance will also automatically increase.
