Union budget 2023: will middle-class workers get an annual pay rise? What we know
In the union budget 2023 to be announced on February 1, there are two benefits for government employees. According to Finance Ministry sources, the budget adjustment factor for the salaries of employees may change and the advance payment of House Building Allowance (HBA) may also be increased from ₹ 25 to ₹ 30,000.
This is the final budget of the Narendra Modi government before the 2024 elections.
The current value of the common fitment factor is 2.57%. In other words, if a person receives a basic salary of Rs 15,500 in the 4200 Grade Compensation, his total pay will be Rs 15,500 x 2.57, or Rs 39,835. The fitment ratio of 1.86 has been suggested by the 6th CPC.
Employees are now reportedly requesting the government to increase the fitting factor to 3.68. The increase will bring the minimum salary up to $26,000 from its present level of Rs 18,000.,
workers are now asking the government to increase the adjustment factor to 3.68. The increase will raise the minimum wage from the current 18,000 rubles to $26,000.
Finance Minister Nirmala Sitharaman will deliver the budget speech and Budget 2023 on February 1. The Parliament's budget session will take place on January 31.
Moneycontrol report claims that the change in compensation proposed by the 7th Pay Commission is the subject of ongoing debate. According to the sources, the salary award has the possibility of adjusting the salaries of civil servants with an adjustment factor. The government believes that instead of raising wages every ten years, it should be done every year. This allows lower-ranking employees to be paid the same salary as higher-ranking officials.
Former Finance Minister Arun Jaitley proposed to increase the salaries of employees every year. In 2016, when the 7th Pay Commission was passed, Jaitley announced that it was time to increase the salaries of employees on an annual basis. Entry-level employees will benefit from this. The government is expected to introduce a new formula to control the salaries of employees in the budget. The annual salary increase system will be introduced in the 2024-25 budget.