# Utility: Good news for government employees, salary may increase by Rs 49,420, know the details!

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We have a piece of good news for all the central government employees. As per the latest updates, there are high chances of increasing the fitment factor soon. An increase in the fitment factor has been a long-standing demand of the Central Government Employees' Unions. They want the government to increase the fitment factor from 2.57 times to 3.68 times.

If the fitment factor is increased then there will be a bumper increase in salary.

Calculation of pay after a possible increase in fitment factor

According to reports, the government may take a decision on increasing the fitment factor after next year's Union Budget. If the government increases the fitment factor by 3 times, then excluding allowances, the salary of the employees will be 18,000 X 2.57 = Rs 46,260. On the other hand, if the demand of the employees is accepted then the salary will be 26000 X 3.68 = Rs 95,680. If the government assumes 3 times the fitment factor, then the basic pay will be Rs 21000 and the total pay excluding allowances will be Rs 21000 X 3 = Rs 63,000.

How does the fitment factor play a role in salary?

The fitment factor plays a big role in the salary of central employees. As per the recommendations of the 7th Pay Commission, apart from pay allowances, the pay of central employees is determined by their basic pay and fitment factor. This is the factor due to which the salary of central employees increases more than two and a half times.

While fixing the pay, the basic pay as well as dearness allowance, traveling allowance, and house rent allowance are multiplied by the 7th Pay Commission's fitment factor of 2.57.

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Salary also includes EPF and Gratuity

Apart from allowances, other components like monthly provident fund and gratuity are also included in the salary. There is a separate formula for calculating the EPF and Gratuity of the central employee. Take-home salary is decided after all allowances and deductions from CTC.