Friday, November 27, 2015

Uniform Fitment Factor recommended by 7th Pay Commission

Uniform Fitment Factor recommended by 7th Pay Commission

The existing PB-1, this index is 2.57, increasing to 2.62 for personnel in PB-2 and further to 2.67 from PB-3. The rationalised entry pay so arrived has been used in devising the new pay matrix.

The 7th Pay Commission recommended uniform fitment factor for all group of Central Government employees. The commission says that the fitment recommended by the VI CPC was in the form of grade pay. Any inconsistency in the computation of grade pay or in the spacing between pay bands has a direct bearing on the quantum of fitment benefit. Therefore, these issues have also been raised by numerous stakeholders. It has been demanded by a majority of the stakeholders that there should be a single fitment factor which should be uniformly applied for all employees.

The 6th CPC had mentioned that grade pay would be equivalent to 40 percent of the maximum of the pre-revised scale and that the grade pay will constitute the actual fitment, yet the computation varied greatly. After the implementation of recommendations, the difference became more pronounced in Pay Band 4 as compared to the other three pay bands. This resulted in varying fitment factors for various levels and promotional benefits that were perceived to be rather differentiated. The same pattern was discernible in the pension fixation too.

And also explained in its report that the starting point for the first level of the matrix has been set at Rs.18,000. This corresponds to the starting pay of Rs.7,000, which is the beginning of PB-1 viz., Rs.5,200 + GP1800, which prevailed on 01.01.2006, the date of implementation of the VI CPCrecommendations. 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.

Finally, the fitment of each employee in the new pay matrix is proposed to be done by multiplying his/her basic pay on the date of implementation by a factor of 2.57.

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