7th Pay Commission Latest News Today: Nearly 52 lakhs Central government employees are eagerly waiting for their salary to increase from July 1 and they are excited about the news. However, they must know that there is something called 7th pay commission fitment factor which is going to impact their monthly salary. Soon after the Centre announced the hike in Dearness Allowance (DA), this 7th pay commission fitment factor has suddenly become a talking point for central government servants (CGS). As per the 7th CPC fitment factor, the 7th CPC salary of a central government employee is decided.
Speaking to Mint, Shiva Gopal Mishra, Secretary — Staff Side at National Council of JCM gave details about the 7th pay commission fitment factor and said that after the DA is restored, a central government employee’s DA is expected to jump from existing 17 per cent to at least 28 per cent. He added that the 7th CPC fitment factor has been fixed at 2.57 while implementing the seventh pay commission, and the employee’s monthly basic salary and monthly contribution like Provident Fund (PF), gratuity are expected to rise from July. He also stated that the seventh pay commission fitment factor will help fix the monthly basic salary by simply multiplying the basic salary with the fitment factor.
Giving details on how the rise in DA will lead to rise in monthly PF deduction, Kartik Jhaveri, Director — Wealth Management at Transcend Consultants told Mint that the monthly PF is decided on the basis of one’s basic salary and DA. “That means, in the case of rise in DA, one’s PF contribution is expected to go northward leading to higher retirement corpus of a central government employee,” he added.
Shiva Gopal Mishra further added that the 7th CPC fitment factor helps decide the basic pay of an employee.
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