Budget 2024 : Finance Minister Nirmala Sitharaman will present the full budget on 23 July 2024. Government employees have high expectations from the first full budget of the third term of the Modi government.
Government employees have been demanding an increase in the fitment factor for a long time. This time its increase in the budget is expected the most because they are hoping that after coming to power, the Modi government can give a gift to the central employees. If this happens, then the central government employees will get a bumper increase in salary. Let us know what is the fitment factor.
What is fitment factor?
The fitment factor decides the basic salary for all the employees of the central government. Allowances are also decided on the basis of basic salary. The money that is made by combining basic salary and allowances is your salary. The fitment factor is the basis for deciding the basic salary.
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How much will the salary increase due to increase in fitment factor
The fitment factor was last increased in 2016, in which the minimum basic salary of employees was increased from Rs 6,000 to Rs 18,000. The possible increase in the fitment factor can increase the minimum basic salary to Rs 26,000. Currently, the minimum basic salary is Rs 18,000, which will increase to Rs 26,000. That is, the basic salary will increase by at least Rs 8,000.
The fitment factor will have to be increased from 2.57 times to 3.68 times. The announcement of increase in the fitment factor of central employees will lead to a good increase in their salary. The salary of the employees will directly increase by Rs 8,000. Along with the increase in basic salary, the allowances related to it like Dearness Allowance (DA), House Rent Allowance etc. will also increase because these are also given on the basis of basic salary.
All allowances will increase together
If the basic pay increases from Rs 18,000 to Rs 26,000, then the dearness allowance will also increase. Dearness Allowance (DA) is equal to 46 percent of the basic salary. DA is calculated by multiplying the rate of DA with the basic pay. That is, with the increase in basic salary, the dearness allowance will also increase automatically.
