7th pay commission: Know how the salary of central employees is calculated, how to get the benefit of Dearness Allowance

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7th pay commission latest news: From July 1, the government has decided to increase dearness allowance from 17 per cent to 28 per cent. Know what is the effect of fitment factor on salary.

Know what is the effect of fitment factor on salary.

7th pay Commission latest news: The Central Government has announced to increase the Dearness Allowance for its employees and pensioners. From July 1, central employees will get increased salary, in which they will get the benefit of dearness allowance of 28 percent instead of 17 percent. At present, the fitment factor for 52 lakh central employees remains a matter of discussion. This is a formula on the basis of which the salary of central employees is decided.

As we have mentioned earlier, fitment factor plays an important role in salary calculation. This fitment factor has been kept 2.57 for the 7th Pay Commission. If you understand this with an example, then if A’s monthly basic salary is Rs 10000, then the monthly basic pay will be Rs 25700 (10000×2.57). After exiting the monthly basic pay, many types of allowances are included in it. This includes allowances like Dearness Allowance, Travel Allowance, Medical Re-imbursement. After doing this complete calculation, the basic monthly pay and gross monthly pay of A is decided.

The benefit of dearness allowance will be available from July 1

The government has decided to increase the dearness allowance from July 1. Provident fund contribution, gratuity contribution for central employees will also increase due to increase in dearness allowance. Talking about the Provident Fund, the monthly basic salary and dearness allowance of an employee is 12 percent. In this, if the share of Dearness Allowance increases, then the PF contribution will also increase. This means retirement funds will increase.

What is fitment factor?

If this question is arising in your mind that what is the connection of salary with fitment factor, then tell that with the help of this factor the basic pay of any employee is calculated. For any employee, the monthly basic pay is about 50 percent of the gross monthly pay. Talking about the monthly basic pay, it is the multiplier of the basic salary by the fitment factor.

How is salary calculation done?

In this sense, if A’s monthly basic pay is 10 thousand, then his monthly basic pay will be Rs 25700 because the fitment factor is 2.57. After this, including multiple allowances, the gross monthly salary will be around Rs 51400. There will be deduction of PF, Tax, Gratuity from this salary and the rest will be his in-hand salary.

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Bhagyashree Soni
Bhagyashree Soni
Bhagyashree Soni is a software engineer with soft writing skills. She is a degree holder from the International School of Entrepreneurial Leadership. She has been a state-level badminton champion and chess player. A woman with a forthright attitude enjoys her writing passion as her chosen career. Writing in the context of feminism, social-cause and entreprenurship is her forte.
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