Will the Government increase fitment factor 3 times?

Media reports say that the next Union Budget may bring good news

Gratuity to be paid on termination of employment only after 5 years of service

For some time now, employees of the Central government have been demanding that the fitment factor be hiked. The question is, will it be hiked? If yes, by how much?

The employees have been asking for the fitment factor to be raised to 3.68 times. It is presently 2.57 times, that is 2.57 times the basic pay of the 6th Pay Commission.

The 6th Pay Commission had suggested 1.86 as fitment factor. The minimum basic pay in the 6th Pay Commission was Rs 7,000. Later, the 7th Pay Commission suggested that a common fitment benefit of 2.57 be applied for all staff members on the rolls of the Central government.

Based on this fitment factor, the minimum basic pay for Central government staff members became Rs 18,000 per month, which is more than double of what it was earlier.

However, the Central government staff had been urging the Government to hike the fitment factor from 2.57 to 3.68. A decision in this regard may soon be taken as per media reports, in the next Union Budget.

The dearness allowance (DA) has already been increased for Central government employees. If the fitment factor is hiked, there will be an increase of Rs 8,000 in the basic pay.

That means, the basic pay will touch Rs 26,000. Simply put, minus allowances, the employees will earn Rs 26,000 x 3.68, which is equal to Rs 95,680. Earlier, they were receiving Rs 46,260, that is minimum salary multiplied by fitment factor of 2.57 (18,000×2.57).

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