If the demand put forward by the Central Government Employees’ Association is accepted, the minimum basic salary could see a sharp increase under the . In fact, with the highest proposed fitment factor, the minimum basic pay may rise to nearly ₹69,000. Here’s how this calculation works and what it could mean for employees.
What is fitment factor?
A fitment factor is a mathematical multiplier used by the Central Pay Commission to convert an employee’s pre-revised basic salary (or pension) into the new, revised basic salary structure.
How the calculator is used?
Following the fitment factor calculator is crucial because any change in the multiplier directly impacts salaries, pensions, increments and related arrears.
What was the fitment factor used by 7th pay commission?
Earlier, the had set this fitment factor at 2.57, which increased the minimum basic salary from ₹7,000 to ₹18,000.
8th Pay Commission: Who has claimed how many fitment factors?
As discussions around the 8th Pay Commission gather pace, various employee unions and organisations have put forward differing demands regarding the fitment factor. The proposed fitment factors range from a low of 1.92 to a high of 3.83. Here’s a look at who is demanding what:
- Conservative estimates by experts: 1.92
- Jammu & Kashmir Employee Forum: 3.05
- All India Trade Union Congress (AITUC): 3
- Federation of National Postal Organisations (FNPO): 3.25
- Jammu and Kashmir Employees Coordination Committee: 2.86 to 3.68
- NC-JCM: 3.83
Based on the current minimum basic pay of ₹18,000 under the 7th Pay Commission, here’s how the revised minimum basic salary could look under different scenarios being discussed for the 8th Pay Commission:
- Fitment Factor 1.92: ₹34,560
- Fitment Factor 2.57 (same as the 7th Pay Commission): ₹46,260
- Fitment Factor 2.86: ₹51,480
- Fitment Factor 3.00: ₹54,000
- Fitment Factor 3.25: ₹58,500
- Fitment Factor 3.68: ₹66,240
- Fitment Factor 3.83: ₹68,940
So, if the government retains the 7th Pay Commission’s fitment factor of 2.57, the minimum basic pay of the lowest-paid central government employee would rise from ₹18,000 to about ₹46,260. However, if the government accepts the highest demand put forward by employee organisations and approves a fitment factor of 3.83, the minimum basic salary could jump to nearly ₹68,940 in one go.
How will the fitment factor impact pay matrix and other allowances?
Basic salary increase: The basic salary of employees of each pay grade will increase proportionally according to the fitment factor.
Allowance revision: Other benefits like House Rent Allowance (HRA) and Transport Allowance will also be reviewed and increased.
DA Merger: Usually, at the time of introduction of a new pay commission, the existing Dearness Allowance is added to the basic salary and from then on, DA is calculated afresh.