The issue of a fitment factor hike for percentage increases for Central Government employees is kicking up a really storm at this time. Turning to media reports, the government is said to be planning for a hike to be considerable in the extremely high fitment factor that happens to set up the minimum basic pay under the mechanism of Central Pay Commission, should it get approved. In turn, such a hike would witness an incredible effect on the salary structure of lakhs of employees across the country.
What Is Fitment Factor?
This fitment factor is actually a multiplier for revising the salary by multiplying the existing basic pay by a specific figure every time a new Pay Commission audit is effected to revise pay. It mainly decides how much increase the employee gets in his salary. Currently, the **fitment factor** is 2.57, meaning the basic pay will be multiplied by 2.57, thus calculating the revised pay.
What Is Proposed For Hike?
Reports indicate that the fitment factors would be increased, so the fitment factor would then reach 3.68. The change would also entail an increase in minimum basic salary by ₹18,000 to ₹26,000. Such increments may appear higher for those employees with a higher pay band. If this is approved, it would mark the first considerable hike since the 7th Pay Commission came into existence back in 2016.
Salary Structure: Consequences
Revised fitment factor scales would probably consequently enhance the take-home salaries of lower and middle-level government employees. Thus, the enhancement would also hold for allowances like DA, HRA, and pensionary benefits.
For example, an employee with a monthly salary of Basic Pay of ₹18,000 is now eligible to receive ₹26,000. Now, through this enhancement, the increase in base pay would increase DA and other allowances accordingly.
Proposed Date For Implementation?
There has been no official proclamation with regard to the enhancement of the fitment factor, but it is believed that the matter may be under discussion in the Ministry of Finance and the Department of Expenditure. A formal declaration may also be likely at the time of the constitution of the 8th Pay Commission, which is, more or less, expected to be set up shortly.
Also Read: 5% Salary Increase And Bonus Approved For Central Govt Workers, Know The Timeline