The government is going to increase the dearness allowance of central government employees from July 1. How is their salary calculated? Know here.
Finally, there is good news for lakhs of Central Government employees as under the 7th Pay Commission, the government is going to increase the dearness allowance (DA) of employees from July 1, 2021. It is expected that the government will also increase the dearness allowance from 17 percent to 28 percent from July 1.
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But, how is the salary of central government employees decided? Know here.
What is fitment factor?
Currently, the fitment factor of central employees is 2.57. The basic salary is calculated by multiplying it by 2.57 which is in addition to allowances like Dearness Allowance (DA), Traveling Allowance (TA), House Rent Allowance (HRA).
For example: If the basic salary of an employee is Rs 18,000, then his salary excluding allowances will be 18,000 X 2.57 = Rs 46,260.
How is Dearness Allowance (DA) calculated
After the salary is fixed, allowances like DA, TA, HRA, Medical reimbursement are decided. Dearness Allowance(DA) is fixed twice a year, i.e. from January to June and then from July to December.
DA is decided on the basis of average inflation in 6 months.