7th Pay Commission: Central employees have recently received the benefit of a 4% increase in dearness allowance. However, there are more positive developments awaiting them in the near future, one of which is the revision of the fitment factor. The government is considering extending the fitment factor until next year, which is causing excitement among employees.
The fitment factor is crucial as it directly impacts the basic salary of government employees. With the potential extension, employees can anticipate a significant increase in their basic pay, which will ultimately contribute to their overall earnings. This news has sparked enthusiasm and discussions among employees, eagerly awaiting the official decision from the government.
Big Announcement Expected on Fitment Factor Next Year
Sources suggest that there won’t be any hike in the fitment factor in 2023. However, there is a possibility of its review and increase in 2024. The government is yet to provide clear information regarding this matter. The Expenditure Department will now brainstorm on the subject and may send recommendations to the Finance Ministry. Additionally, there are speculations about the formation of a new Pay Commission next year, which could also determine the decision on the fitment factor. It remains uncertain when the next Pay Commission will be established, but the government is making efforts to revise the salaries of central employees in the coming year.
Why is there a Demand to Increase the Fitment Factor?
The Fitment Factor holds significant importance for central employees as it determines the extent to which their minimum salary (Basic Salary) will increase. As per the recommendations of the 7th Pay Commission, the basic salary of central employees increases solely based on the fitment factor, in addition to allowances. The previous increase in the fitment factor resulted in a more than two-and-a-half-fold hike in the salary of central employees. However, employees have been demanding a further increase in the fitment factor to ensure a substantial raise in their basic salary. The government is currently not inclined towards this demand.
Understanding the Fitment Factor
As per the recommendations of the 7th Pay Commission, the current fitment factor stands at 2.57. The basic salary of central employees is calculated by multiplying this fitment factor with the latest update of the 7th Pay Commission. After the implementation of the 7th Pay Commission, the basic pay was determined by adding the Grade Pay to the Pay Band of the 6th Pay Commission. The salary of employees at the entry level was calculated by multiplying the fitment factor by 2.57, which formed the basis of their pay band.
For example-
- 6th CPC Pay Band: PB 1
- Grade Pay: Rs 1800
- Current Entry Pay: Rs 7000
- Entry Pay after applying fitment factor under 7th Pay Commission: 7000 x 2.57 = Rs 18,000.
What if the fitment factor is 3 times?
- 6th CPC Pay Band: PB 1
- Grade Pay: Rs 1800
- Current Entry Pay: Rs 7000
- Entry Pay after applying fitment factor under 7th Pay Commission: Rs 7000 x 3 = Rs 21,000.
Expected Salary Increase for Central Employees
Currently, central employees receive a fitment factor of 2.57 in the existing system. With this factor, the minimum salary (Basic Salary based on the fitment factor) is Rs. 18,000. If the fitment factor is increased to 3, the basic salary will become Rs. 21,000. Furthermore, if the fitment factor is raised to 3.68, the salary will be Rs. 25,760. Employees are demanding an increase in their fitment factor to 3.68, which would result in a minimum salary of Rs. 26,000.
