Centre mulls changing pay fitment factor

New Delhi: The Central government is mulling a revision in the factor to calculate the pay of its employees that may increase income levels of lower level employees the beyond the recommendations of 7th Commission, a top finance ministry official said today.

Representative image

The norms for fixing pay of central government employees today are based on recommendations of the 7th Commission.

Under it, the the basic pay in 6th Pay Commission is multiplied by fitment factor 2.57 for lower level employees and multiplied by above 2.57 fitment factor for higher level employees.

The fitment factor 2.57 gave central government employees, a 14 per cent salary hike in 2016, the lowest in 70 years. While, the previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

So, employees’ unions were demanding hike in pay with a fitment factor of 3.00 and they had threatened to go on an indefinite strike over it on July 11, 2016.

They had called off their indefinite strike following the pay hike promise of the Finance Minister Arun Jaitley on June 30, 2016.

Jaitley also reiterated his promise in Rajya Sabha on July 19, 2016.

Accordingly, the government formed National Anomaly Committee (NAC) in September, 2016 to resolve pay anomalies arising out of the implementation of the 7th Pay Commission’s recommendations.

The NAC agreed to address the pay anomaly like the difference of fitment factors in its meeting on July 17, 2018.

“The government is considering hiking fitment factor 2.7 or 2.8 for encouraging the lower level employees on the report of NAC,” the official aware of the development said, requesting anonymity. “It will be announce before general elections.”

The official did not disclose the time of announcement.