It was the great hopes of the central government employees that the 8th Pay Commission would make itpossible for them to increase their salaries largely. One of the changes most anticipated was the revision of the fitment factor, which determines the increase in basic pay. Unfortunately, the latest reports indicate that the much-anticipated upward revision of the fitment factor may not materialize.
What is the Fitment Factor?
Fitment factor is the multiplicand used to determine the revised basic salary of an employee in the event of the introduction of a new pay commission. For the 7th Pay Commission era, fitment factor stands at 2.57.
Stakeholders expected the detailing of fitment factor under the 8th Pay Commission to be 3.00 at the very least or more. With such an increase, salaries would have jumped enormously, thereby increasing the standards of living of millions of employees.
Latest Updates
Now, in respect of the new fitment factor, the latest reports indicate that the government may consider a number around 2.86 instead of 3.00. The lesser than expected increment has its way with reducing the impact of salary hike. While it somewhat assures increase in pay for employees, the pay increment will be rather low as opposed to what a good number of them had expected.
Impacts on Salaries
If the fitment factor is fixed at 2.86, then the minimum basic salary of central employees would indeed rise, though not by as much as expected. When the minimum salary may have, with the factor of 3.00, gone up to almost ₹26,000, with the factor of 2.86, it would remain somewhat around ₹23,000. This difference of almost ₹3,000 in monthly income is seen as a big blow by the employees and unions.
Employees’ Expectations and Reactions
Central employees unions have come forth with clear demands to increase the fitment factor, accentuating that inflation, rising household expenses, and economic hardships require a stronger hike. Employees with this news about the lower factor are most disappointed. This may also spur more union pressure on the government to reconsider the factor as a whole ahead of the final report.
Government’s Position
The government, meanwhile, appears to be weighing the employees’ expectations with financial prudence. In contrast, a high fitment factor would have placed a huge salary burden on the exchequer. By checking the multiplier at around 2.86, the government wants to provide some relief to the employees but also to be fiscally responsible.
Conclusion
Central government employees had expected the fitment factor set by the 8th Pay Commission to be an unending stream of good news. However, reports suggest the factor will actually be set at 2.86 rather than 3.00, which means that salary increases would not be quite as much as had been hoped for. This decision has left employees disappointed, and it is yet to be seen if further changes will be made under pressure by the unions.