After the unveiling of the Union Budget 2023, it is anticipated that the min salary for government employees will increase. According to a top news source, Finance Minister Nirmala Sitharaman will present the 2023 budget speech on February 1. The budget session of Parliament will get started on January 31. The fitment factor of the pay of government employees is reportedly subject to revision by the government. The common fitment factor currently stands at 2.57 times.
The government has come under pressure from the government’s workforce to increase the fitment factor to 3.68. The wage would rise from Rs 18,000 to Rs 26,000 as a result of the hike.
Government employees contend that even with the increase in DA, there should be an increase in the basic salary because the compensation increases on this basis. According to earlier reports, the central government is also anticipated to increase the dearness allowance (DA) for government employees beginning on January 1 in March 2023.
7th Pay Commission: Govt hikes DA by 4 percent to 38 percent
Based on the percentage increase in the 12-month average of the All India Consumer Price Index for the period ending June 2022, the Union Cabinet had approved on September 28, 2022, the release of additional Dearness Allowance and Dearness Relief payments at a rate of 4 percent to Central Government employees and pensioners due on July 1, 2022.
A higher amount of Dearness Allowance and Dearness Relief would be available to Central Government employees and pensioners, respectively, starting on July 1, 2022.
The additional budgetary effects of this increase in Dearness Allowance for employees of the Central Government are projected to be Rs. 6,591.36 crore annually and Rs. 4,394.24 crore in the fiscal year 2022–2023 (i.e. for a period of 8 months from July, 2022 to February, 2023).
According to estimates, this rise in Dearness Relief for Pensioners will have significant financial effects totaling Rs. 6,261.20 crore annually and Rs. 4,174.12 crore in the financial year 2022–2023 (i.e. for a period of 8 months from July, 2022 to February, 2023).