Central Government Employees Salary Increase

Last Updated on August 16, 2023 by Brajesh

Good News is coming for Central Government Employees, as they are going to witness a huge increase in their Salary on account of increase in DA, fitment benefit & HRA.

Central Government Employees Salary Increase for 3 reason

Central Government every time brings some good news for its employees to fight against inflation, Government launches schemes to mitigate the impact of inflation which has huge impact on employees financials. Government is again going to announce a good news for employees which will increase the salary of the central government employee.

Dearness Allowance, Fitment Factor & House Rent Allowance of Central Government Employees is expected to increase very soon. In September an DA hike of 3% is expected in their salary component. It is to be noted that DA is dependent on Cost Price Index figure, and after the final data release in July 2023 , a handsome increase in DA of 3 % is expected

According to few media reports, apart from DA hike, some increase in Fitment Factor and House Rent Allowance is also expected which will increase the salary for the employees by huge amount.

Even though the same is not official decided but it is most certain to happen to help the financial position of central governmnet employees to fight with rising cost

DA to increase to 45%, waiting cabinet nod

Proposal for increase in DA will soon be prepared by Union Ministry -Expenditure department for increase in DA by 3%. Central Government Employees and pensioner both will be eligible to get this raise in DA. Pensioner DR is expected to go up to 45% and Central Government Employees DA to go up to 45 %. Increase in DA will be effective from July 2023, however it will be implemented after cabinet approval hence it is expected to be implemented from September 2023 and for 2 months, i.e. July & August 2023, employee will get due arrear.

Benefit will flow to more then 1 crore employees

Approximately 47.58 Lakh Central Government Employees & 69.76 Lakh pensioner will get the benefit of DA/DR hike.

Lest say an employee gets a Basic of ₹ 30000 per month, then his DA will be ₹ 12600 per month @ DA of 42 %. However after revision in DA to 45% he will be eligible for a DA of ₹ 13500, thus giving him an additional inflationary compensation of ₹ 900.

HRA increase is also expected

Last House Rent Allowance increased for Central Government Employee was in July 2021. HRA increased by 25% in that year. Now as per media report , it is expected that HRA for central government employee is also going to get increased by certain %. HRA for employees is based on category of city, which is X, Y & Z. Z class employee’s gets 9% ,whereas Y Class & X class gets 18% & 27% respectively. Going by the media report it is expected that 3%, 2% & 1% of increase in HRA is expected in X, Y & Z class cities.

Increase in fitment factor

Apart from DA & HRA , Central Government employees may also get an additional incentive in the form of increase in fitment benefit. It is expected that around 2.50 times of increase can be witnessed in fitment factor. Present fitment factor of Employees is 2.57%. Even though the confirmation is pending but looking at election in 2024, Modi Government may announce a revise fitment benefit up to 4% for central government employees.

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