The 8th Pay Commission is expected to impact over 1.1 crore beneficiaries, including central government employees, pensioners and their families, but is yet to submit its recommendations. Meanwhile, the Indian Railway Technical Supervisors Association (IRTSA) has proposed a five-fitment-factor formula for pay revision, which, in some cases, could increase pay by more than 300-400%.
A Live Mint report said the railway union has suggested different fitment factors for different pay levels to ensure balanced pay hike for lower, middle and senior staff.
What is fitment factor?
Fitment factor is a multiplier used by the Pay Commission to revise the basic pay and pension of government employees. The revised pay is calculated by multiplying the current basic pay by the proposed fitment factor.
This concept came into wide discussion during the 6th and 7th Pay Commissions, in which fitment factors were used to standardize pay revisions. The 7th Central Pay Commission implemented a fitment factor of 2.57.
Read this also 8th Pay Commission: Information about salary hike, pension increase and fitment factor
Fitment factors proposed by IRTSA
Level 1-5: 2.92
Level 6-8: 3.50
Level 9-12: 3.80
Level 13-16: 4.09
Level 17-18: 4.38
How will salary be calculated?
Formula: Current Basic Pay × Fitment Factor = Revised Basic Pay
For example:
A Level 1-5 employee who earns a basic salary ₹Salary will increase by up to Rs 10,000 ₹Rs 29,200 using 2.92 fitment factor.
An employee in level 6-8 with current basic salary ₹Will get revised salary of Rs 40,000 ₹1,40,000 after applying 3.50 fitment factor.
If an employee under Level 13-16 currently earns ₹1,00,000 as basic pay, applying 4.09 fitment factor will increase the revised pay ₹4,09,000.
Similarly, an employee in Level 17-18 whose current basic pay is ₹Revised basic pay will increase by Rs 2,20,000 ₹Rs 9,63,600 under the proposed 4.38 fitment factor.
Read this also 8th Pay Commission: How much can central government employees expect in arrears?
Speculation has intensified regarding the 8th Pay Commission as central government employees await clarity on its implementation and possible pay revision. However, reports indicate that the government may not accept several key demands raised by employee unions, leaving uncertainty over expectations of a major wage hike.