The curiosity between central employees and pensioners has been at its peak since the Modi government’s 8th Pay Commission announced the 8th Pay Commission. More than 1.2 crore government employees and pensioners want to know how much their salary and pension are going to increase. At the center of this entire discussion – Fitment Factor.
What is a fitment factor?
The Fitment Factor is a multiplier formula, with the help of which the Pay Commission decides how much the basic salary will be in the new pay scale. For example, if an employee has an existing basic salary of ₹ 18,000 and the fitment factor is 2.57, the new salary will be ₹ 18,000 x 2.57 = ₹ 46,260. That is, the more fitment factor, the more the salary will increase.
Preparation and Tor of 8th Pay Commission
It has been indicated by the government that soon the Terms of Reference (Tor) of the 8th Pay Commission will be released. After this, the chairman and members of the commission will be appointed. Last month, two circulars were issued by the Finance Ministry, stating that the appointment process of 40 officers for the Pay Commission has started, most of which will be filled through deputation.
How much can the fitment factor be?
According to the information received so far, many employee organizations have demanded 2.86 fitment factor. This can increase the salary and pension of employees significantly. But experts believe that this demand is not practical.
Former Finance Secretary Subhash Garg says that it will be difficult for the government to accept a high factor like 2.86. He suggests that the 1.92 fitment factor may be a more realistic option.
If 1.92 fitment factor is applied?
If the government adopts a fitment factor of 1.92, the minimum basic salary can increase from ₹ 18,000 to ₹ 34,560. That is, an increase of about 16,560 rupees. However, a large part of this will go on adjusting dearness allowances (DA). The actual increase will be considered a little less than this.
Comparison with previous pay commissions
6th Pay Commission (2006): The fitment factor was 1.86, but the salary saw an average of 54% increase.
7th Pay Commission (2016): Fitment Factor 2.57 was fixed, but the actual salary increase was only 14.2% as a large part of it went into DA adjustment.
That is, it is not right to estimate the direct increase in salary by just looking at the figure of fitment factor.
Expectations of employees and pensioners
Government employees and pensioners are expecting that this time recommendations will be made keeping in mind their current financial needs. In view of inflation, cost of living and family responsibilities, employees expect a proper and balanced growth.
conclusion
The process of the 8th Pay Commission has started and more important announcements related to it may be revealed in the coming months. The final decision on the fitment factor is yet to come, but it is certain that it will give a new direction in the salary and pension of government employees.
If the government approves more than 1.92 fitment factor in future, then it will be a big relief. But this decision will be taken keeping in mind the economic situation, budget limitations and fiscal responsibilities. Employees will have to wait with both restraint and hope until the final report comes.
