Another pay bonanza? Reports suggests govt. working on revising fitment factor

Unconfirmed report - Based on News Portals. Reader discretion advised

There are media reports stating that the government is working on a proposal to hike the fitment factor adapted to calculate the basic pay of the central government employees during the implementation of the  7th pay commission report.  Various unions have been demanding that the fitment factor be hiked from 2.57 per cent to 3.68 per cent. If reports are to be believed the decision is likely to be taken before the presentation of Union Budget 2022.

If this happens it will be a bumper increment in the basic pay with a proportionate increment in the dearness allowance, HRA and TA. On implementation of the 7th pay commission recommendations, the government had chosen fitment as 2.57%. That is the pay under the 6th pay commission scale is to be multiplied by 2.57 to get the new pay. the employee unions and associations had pointed out that this calculation is wrong and it should be 3.68% If the government accepts the fitment factor of 3.68%, it will result in the hike of basic pay by approximately 40%. The minimum pay of Rs 18,000 will go up to Rs 26,000.

The pay ratio between the highest stated pay matrix (Level-18) and the lowest grade (Level -1) under the 7th Pay Commission is 1:13.9, up from 1:12 in the previous pay scale. From the second pay commission's 1:41 ratio to the sixth pay commission's 1:12 ratio, all pay commissions except the seventh made up the pay disparity between lower paid employees and senior officials.

A High-Level Committee to look into employees' demands on 7th Pay Commission as appointed by the government and had reviewed the matter but the government has not considered it further

The cabinet secretary had earlier promised an increase in the fitting factor during previous discussions between central government employees and government representatives. The unions also claim that during the previous Modi government, after the 7th pay commission recommendations implementations, Finance Minister had made a promise that he will consider hiking the minimum pay of the employees under the 7th Pay Commission but it never happened. 

Sources: 

• News18
• Zee News