7th Pay Commission Update: AICPI index plays an important role in deciding the dearness allowance of central employees by the government. After the June AICPI index came to 129.2 points, it is expected that the DA of employees can be increased by up to 4 percent.
The month of September is going to be very special for the central government employees. According to media reports, a big announcement can be made on the increase in dearness allowance (DA Hike), arrears and fitment factor next month before the festive season. If this happens, then there can be a tremendous increase in the salary of central employees.
Expectation of 4 percent DA Hike
It is being expected in media reports that the government can increase the dearness allowance of central employees by 4 percent. Earlier it was being said that a decision to increase DA can be taken at the end of July, but it could not happen. Now there is a possibility that during the time of Navratri in the month of September, the employees can be given the gift of DA Hike.
After the increase of 4 percent, the dearness allowance of central employees will increase from 34 percent to 38 percent. The government had increased the DA of the employees in the month of March this year. Then the DA was increased by 3 per cent and it was increased from 31 per cent to 34 per cent. It is worth noting that DA is part of the salary structure of the employees.
The government fixes DA according to the inflation rate. So that the lifestyle of the employees is not affected in any way. By increasing the dearness allowance of the government, 50 lakh employees and 65 lakh pensioners of the country will benefit.
Important role of AICPI data
The AICPI index plays an important role in deciding the dearness allowance of central employees by the government. After the June AICPI index came to 129.2 points, it is expected that the DA of employees can be increased by up to 4 percent. After February, there is a strong jump in the AICPI index.
The figure of the AICPI index was 125.1 in January 2022, which came down to 125 in February. At the same time, it again jumped in March and it reached 126 points. After this, it also increased in April and it increased to 127.7. Even after this, the increase continued and in May it reached 129 points, while in June it reached 129.2 points.
Decision on outstanding arrears possible
Talking about other gifts, the Central employee’s long pending arrears can also be announced to be given to them in the month of September. Due to Kovid-19, the government had held the DA of the employees from January 2020 to June 2021. Employees are continuously demanding payment of their outstanding DA Arrears. If the Center announces the payment of the outstanding DA for this 18 months, then a huge amount will be added to the salary of the central employees.
Announcement may be made on fitment factor
Along with the DA hike, central employees have been demanding for a long time that their fitment factor should also be increased. At present it is 2.57 percent, which is being sought to be increased to 3.68 percent. Earlier reports had expressed hope that a decision on the fitment factor of the employees might come before the start of the new financial year, but this did not happen. Now once again with the expectation of DA hike in September, the possibility of increase in this item has also increased.
Understand fitment factor like this
The fitment factor decides the basic salary for all central government employees. That is, it has a big role in the salary received by the employees. Due to this, the salary of central employees increases by more than two and a half times. According to the recommendations of the 7th Pay Commission, the salary of central employees is fixed on the basis of their basic salary and fitment factor in addition to allowances. That is, the increase in this is sure to increase the salary. The last time the fitment factor was increased was in the year 2016.