Central employees and pensioners are quite ecstatic about the 8th Pay Commission. For them, the expectation is huge for the salary and pension hike. The most enticing bit is a proposal regarding the fitment factor, which is going to rake in money for all these people.
What is Fitment Factor
The fitment factor is the multiplier on basic pay basis which restructures the salary and pension of persons among all categories of government employees. It is an important component in increasing the total pay package. The fitment factor in the 7th Pay Commission was 2.57 which raised the minimum salary from ₹7,000 to ₹17,990.
Proposed enhancement under 8th pay commission
It is said that it is intended to increase the fitment factor to 2.86, in which case the minimum salary of central employees would scale from ₹17,990 to nearly ₹51,451, thus upgrading the level of living.
Pension impact
The fitment factor is also going to grant benefits to pensioners since now minimum pension stands at ₹9,000 and would go up to almost ₹25,740 once the impact of fitment factor sets into place.
Current Status of 8th Pay Commission
The government has not yet formally announced the constancy of the eighth pay commission. Still, all employee unions and collectivities continue demanding its establishment so that employees and pensioners can be relieved from the burden of rising inflation and cost of living. It has been a norm for a pay commission to appoint every ten years, and recommendations from the seventh pay commission were implemented in 2016.
Conclusion
Increasing the fitment factor to 2.86 under the 8th Pay Commission is expected to provide financial benefits to central employees and pensioners. However, the official announcement is still awaited, which indicates the possibility of bringing an acceptable pay structure in view of the new economic situation.
