7th pay commission: Experts say that monthly PF is fixed on the basis of basic salary and DA of an employee. This means that due to increase in DA, the PF deducted every month will increase.
Dearness Allowance (DA) of 52 lakh central employees of the country is going to be restored very soon. With this, the discussion of the 7th Pay Commission fitment factor (7th pay commission fitment factor) has intensified among the central employees. According to the fitment factor, the salary received by a central employee under the 7th Pay Commission will be fixed on the basis of dearness allowance and basic salary.
DA restoration of central employees will have a big impact on their salary. Bumper increase in salary can be seen. According to Shiv Gopal Mishra, secretary of the National Council of JCM, after the restoration of DA of central employees, the amount of existing DA is likely to increase from 17% to 28%. At present, the 7th cpc fitment factor has been fixed at 2.57. With the implementation of the 7th Pay Commission, a big increase can be seen in the salary of a central employee and the PF, gratuity deposited every month. At present, the entire salary of the employee is determined by multiplying the basic salary by the fitment factor (2.57).
How will the salary be decided
Shiv Gopal Mishra tells the business newspaper ‘Mint’, suppose the basic salary of a government employee is Rs 20,000. Accordingly, the monthly basic pay will be Rs 51,400. It has been calculated by multiplying the fitment factor 2.57 for Rs 20,000. After this basic pay, the employee’s DA, TA, medical reimbursement etc. are calculated. After this, according to the basic monthly pay and total allowance, the gross monthly pay of the employee will be determined.
How much money will be deducted in a month
If DA increases, what will be the effect on the PF deducted every month? Experts say that monthly PF is fixed on the basis of basic salary and DA of an employee. This means that due to increase in DA, the PF deducted every month will increase. The effect of this will be that in the end the retirement fund will be more. Big retirement money will come in the hands of central employees.
What is fitment factor
Shiv Gopal Mishra of National Council of JCM says, 7th CPC fitment factor plays a big role in determining the basic pay of any government employee. The basic salary is about 50% of the gross monthly salary of a central employee. According to this, if a central employee gets 20 thousand basic salary every month, then his gross monthly salary will be around Rs 1,02,800.
Basic salary multiplied by fitment factor (2.57) and doubling it will be the gross salary for every month. After this there will be deduction of monthly PF, income tax etc. After deducting all this, the salary in hand is fixed every month. This is called net take home salary or hand salary which is given to a central employee.
Who benefits from DA
The increased dearness allowance has been implemented from 1 April 2021. Although how much is coming in hand, it will be known in July. This will be combined with the basic salary, which can see a good increase in the salary. This decision of the government will benefit 1.5 crore central employees. These include casual and contract workers as well. It is expected that the full increase in dearness allowance of central employees will be announced on July 1. It is expected that the government can increase the dearness allowance of employees by 4 percent.
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