While Fitment Factor serves as key determining factors, it is presently considered the most vital element in fixing the revised pay scale for central government employees, functioning as a multiplier to determine basic pay following the implementation of a pay commission’s recommendations. Once again, under the 7th Pay Commission, the fitment factor stands at 2.57: that is, the basic salary is multiplied by this when determining the revised pay.
Demanding A Higher Fitment Factor
Central government employees’ unions have long been demanding an increase in the fitment factor since they feel the increment, as it stands, does not keep pace with inflation and cost of living. Employees want it to be increased to at least 3.68, which will substantially relieve them as the minimum basic salary will be around ₹26,000 per month against ₹18,000 as of now.
2025 Update: Government’s Consideration
According to the recent reports in 2025, the government has yet again initiated the reconsideration of the proposal for an upward revision of the fitment factor. If implemented, more than 47 lakh central employees and about 68 lakh pensioners would stand to benefit from the revision. The decision, if taken forward, would provide some sort of impetus to the families on government salaries and pensions in terms of disposable income and their financial stability.
Impact On Salary Structure
- Increasing the fitment factor would entail an extensive salary structure change: Minimum Basic Pay can go up from ₹18,000 to ₹26,000.
- Other allowances such as House Rent Allowance (HRA), Dearness Allowance (DA), and Travel Allowance would also see a proportionate increase, since these are calculated on the basis of the basic pay.
- Pensioners would enjoy an equal benefit because pensions are directly linked to basic salary revisions.
Timeline For Possible Announcement
According to sources, a final decision is likely to be taken in early 2025, perhaps along with the Union Budget or before the festive season. The Government is expected to tread a fine line, weighing employee demands against fiscal responsibility, as the salary and pension bill on account of a higher fitment factor will increase substantially.
Also Read: 50% DA Hike In 2025: Check New Salary, Pay Scale & Pension Benefits
