New Delhi: The discussion between central employees and pensioners regarding the 8th Pay Commission has intensified. Most of the focus is on the fitment factor, because this is the basis that will decide the basic salary of the employees in the new pay structure. There has been a demand from employee organisations to increase the minimum basic salary to Rs 69,000 and the fitment factor to 3.83. If this demand is accepted, then there may be a big change in the income of lakhs of employees and pensioners.
However, no proposal has been approved by the government yet, and the final decision will be taken only after the recommendations of the Pay Commission.
What is the logic behind the demand for Rs 69 thousand?
The representative organisation of central employees has said in its memorandum that the current salary structure is no longer in line with rising inflation and the cost of living. For this reason, a demand has been raised to increase the minimum basic salary from the current level to Rs 69,000. Employee organisations argue that expenditure on housing, education, health and transport has increased rapidly in the last few years, which has affected the real income of employees.
What is the fitment factor?
Fitment factor is the multiplier based on which the existing basic pay is revised. For example, if the basic salary of an employee is Rs 18,000 and a fitment factor of 3.83 is applied, then his revised basic salary can reach around Rs 69,000. This is the reason why the fitment factor is considered the most important topic in the discussions of the Pay Commission.
How diverse are the demands of employee organisations?
Different employee organisations have proposed different fitment factors. While NC-JCM has demanded a fitment factor of 3.83, some other organisations have proposed 3.0, 3.25 and up to 3.68. Employee organisations of Jammu and Kashmir have demanded increasing the minimum wage from Rs 51,480 to Rs 66,240 and implementing a fitment factor between 2.86 and 3.68.
Can the government accept these demands?
At present, the government has not given official consent to any proposal. The Pay Commission is currently considering the suggestions of various employee organisations, departments and pensioners. Experts believe that the final recommendation will be prepared by striking a balance between the demands of employees and the financial capacity of the government. Therefore, it would be premature to consider the basic salary of Rs 69,000 and the fitment factor of 3.83 as final.
What are the eyes of millions of employees on?
About 50 lakh central employees and more than 60 lakh pensioners are waiting for the recommendations of the 8th Pay Commission. Possible changes in salary hike, pension revision, house rent allowance (HRA) and other allowances will directly affect their financial condition. In such a situation, the decision on the fitment factor will play an important role in deciding the income structure of the coming years.
