7th Pay Commission Fitment Factor 2.57
Multiplication Factor / Fitment Formula recommended by 7th Pay Commission
7th Pay Commission recommended the Multiplication Factor is 2.57
What is Fitment Factor or Fitment Benefit?
Fitment Factor is a common multiplication number, which is used for arriving a common result. More than 30 lakh employees are working in Central Government Services.
The 6th Pay Commission recommended 1.86 as Fitment Factor in its report. Whereas, the 7th Pay Commission has recommended common fitment benefit applied for all employees as 2.57.
Fitment Factor in 7th CPC: The starting point for the first level of the matrix has been set at 18,000. This corresponds to the present starting pay of 7,000, which is the beginning of PB-1 viz., 5200 + GP 1800, on the date of implementation of the VI CPC recommendations. Hence the starting point now proposed is 2.57 times of what was prevailing on 01.01.2006. This fitment factor of 2.57 is being proposed to be applied uniformly for all employees.
The starting point of a Sepoy (and equivalent), the entry level personnel in the defence forces, has been fixed in the Defence Pay Matrix at 21,700. The starting point in the existing pay structure is 8,460 for a Sepoy/equivalent.
The fitment in the new matrix is essentially a multiple factor of 2.57. This multiple is the ratio of the new minimum pay arrived at by the Commission (18,000) and the existing minimum pay (7,000). The fitment factor is being applied uniformly to all employees.
It includes a factor of 2.25 to account for DA neutralisation, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay as on 01.01.2016. The actual raise/fitment being recommended by the Commission is 14.29 percent. An identical fitment of 2.57 has also been applied to the existing rates of Military Service Pay (MSP), applicable to defence forces personnel only.
Hence the starting point now proposed is 2.57 times of what was prevailing on 01.01.2006. This fitment factor of 2.57 is being proposed to be applied uniformly for all employees. It includes a factor of 2.25 on account of DA neutralisation, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay. Accordingly, the actual raise/fitment being recommended is 14.29 percent.
7th Pay Commission Fitment Table : National Council JCM Staff Side suggested in their memorandum regarding fitment formula as follows…
The fitment formula suggested by all the earlier Pay Commissions was not reflective of the actual revision of wages. The employees who were on rolls on the date of implementation of the Commission’s recommendation comparatively received lesser benefit than the new entrants. Amongst the existing employees also, more benefit accrued to persons with lesser service period. This happened due to the rejection of the demand of the Staff Side to have point to point fixation.
The anomalous situation was addressed during the discussion the Staff Side had with the Group of Ministers in September 1997, over the implementation of the recommendations of the 5th CPC. In the place of 20% of the basic pay recommended by the 5th CPC as fitment formula the Staff Side could negotiate and settle it at 40%. The said agreement brought about near total satisfaction over the revision benefit amongst all sections of employees. The said 40% benefit brought about uniform multiplication factor too.
Taking these in to consideration, we suggest that the multiplication factor (26000/7000 = 3.7) may be applied uniformly in all the cases to arrive at the revised pay in the new scale of pay.