Salary hike is based on a major point called the fitment factor, which is a key doer for any rise in the salary of employees. So based on this, the salary gets increased. In such a situation, now the question might be coming into your mind that how… So let’s know in this news below-
Eighth Pay Commission
The implementation of the Eighth Pay Commission report means that it will be almost Diwali-like celebration in the homes of the government employees, because raising the salary of this scale bodes some interesting and good signs for the employees.
Now the government expresses its clear opinion on the 18 months’ pending DA Arrears of the central employees, as it was said in a written reply.
However, the preliminary reports have come, but the employees do not know how much the salary will increase. The main basis of salary hike is the fitment factor, which plays an important role in increasing the salary of the employees. Based on this, the salary is increased. How? In this news below –
Seventh Pay Commission
During the Seventh Pay Commission, when the Modi Government approved it, the basic salary saw a steep increase. It jumped from Rs 7,000 to Rs 18,000 afterwards. Going by this pattern, the total salary also increased. But how it was hiked from 7,000 to 18,000 a month was the fitment factor. The fitment factor, therefore, was 2.57. According to that, the salary was to increase 2.57 times under the new pay commission, and so it went on to reach Rs 18,000 (from Rs 7,000).
In the previous pay commission, the fitment factor was 1.86. This meant that the basic salary was to increase 1.86 times (little less than double) in the 7th pay commission. That way it went. This time, it is quite clear that the last fitment factor was set to be 2.57.
What is the fitment factor and how is decided?
The fitment factor is an important formula that is used to improve the salary and pension of Central Government employees and pensioners. It adjusts the basic pay of the employee to the new pay scale by: booting it by a fixed multiplier. It is based on the recommendations of each Pay Commission and is amended from time to time. It aims to improve the economic condition of the employees and maintain their purchasing power with inflation (mehangai bhatta).
Certain factors help in deciding the fitment factor, such as the economic condition of the government, the level of inflation and the needs of the employees. Initially, the Pay Commission looked into pay scales and government employees’ allowances. Then, a multiplier would be set to determine fitment factor. For instance, the 7th Pay Commission fixed the fitment factor at 2.57, which means a salary of an employee would become-the new one which is to be obtained by multiplying his basic salary by 2.57. If an employee had a basic salary of Rs 15,000, then he would get Rs 38,550 as his new salary with a fitment factor of 2.57. And it should be borne in mind, that is basic. This very new emolument is also being readied for allowance calculation through Dearness Allowance (DA).
Fitment factor mainly determines the gross salary and pension of employees. Any rise in the fitment factor raises the salaries of employees there by benefiting the pensioners. This addresses the problem of inflation because it is enhanced for the employees’ financial impact. Therefore, the employees’ union (employees update) demands an increasing fitment factor, giving them successful balance between salary and pension and standard of living.
