The fitment factor of the 8th Pay Commission will increase...
Ever since the announcement of the 8th Pay Commission, the discussion has intensified regarding the 'fitment factor' on the basis of revision of salary and pension of central government employees and pensioners. According to reports, the fitment factor in the 8th Pay Commission can be between 1.92 to 2.86. Actually, the fitment factor is a multiplier, which the government uses to revise the salary and pension of employees. However, there is also a misunderstanding about the fitment factor.
What is the real meaning of fitment factor?
It is a misconception that if the fitment factor in the 8th Pay Commission is 2.86, then the salary and pension will also increase by the same number of times. Actually, the fitment factor applies only to the basic salary, not to the gross salary.
Why is the increase in salary and pension not in proportion to the fitment factor?
According to the Financial Express report, the fitment factor does not have much effect on the gross salary, as the total salary also includes many other components. While revising the salary and pension, the pay panel takes into account many other aspects, such as merging DA with basic pay and adding or removing many allowances. This ensures that the calculation of the fitment factor will be applicable only on the basic pay.
In simple language, understand it like this, the fitment factor in the 7th Pay Commission was 2.57, due to which the basic pay increased from Rs 7,000 to Rs 18,000. But, if we talk about the actual increase, the salary and pension of level 1-3 employees increased by an average of only 15 percent. However, employees of level 4-10 got a bigger increase than this.
At the same time, the fitment factor in the 6th Pay Commission was 1.86, but the salary and pension increased by 54 percent. It is clear from this that higher fitment factor does not mean that the total salary will increase by the same amount.
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