If the government accepts the demand for a common fitment factor in 8th Pay Commission, then then the percentage of pay hikes would be the same for all employees as a single multiplier would be used to compute revised salaries and allowances at all levels.
The Central Government Employee's representative in the National Council of Joint Consultative Machinery (NC-JCM) has demanded that there should be a common fitment factor across all pay levels in the 8th Central Pay Commission (CPC), according to a report by NDTV Profit.
The report quoted Shiv Gopal Mishra, secretary, NC-JCM (Staff Side) as saying that the fitment factor should be same across all pay levels or pay bands. This may help reduce the widening gap between minimum and maximum salaries offered to central government employees.
Why common fitment factor is not available now
The 7th pay commission had taken a different approach on fitment factor for all employees. For employees in Pay Band 1, it had recommended a fitment factor of 2.57. But for employees in higher pay bands, it had taken recommended different multipliers by taking into account the index of rationalisation.
For instance, the multipliers used in Pay Band 2 with Grade Pay ₹4200 and Pay Band 3 with Grade Pay 5400 were 2.62 and 2.67 respectively. But the multiplier used in Pay Band 1 with Grade Pay 1800 was 2.57.
The 7th CPC was of the belief that the role, responsibility and accountability increases as an employee moves up in the hierarchy.
“Rationalisation has been done to ensure that the quantum of jump, in financial terms, between these pay bands is reasonable. This has been achieved by applying ‘index of rationalisation’ from PB-2 onwards on the premise that with enhancement of levels from Pay Band 1 to 2, 2 to 3 and onwards, the role, responsibility and accountability increases at each step in the hierarchy,” the 7th CPC said.
“The proposed pay structure reflects the same principle. Hence, the existing entry pay at each level corresponding to successive grades pay in each pay band, from PB-2 onwards, has been enhanced by an ‘index of rationalisation’,” it added.
Work in progress
While the government announced the decision to set up the 8th Pay Commission recently, it is yet to be officially established.
It is, however, expected that the the commission would be set up timely and it would have enough time to prepare and submit its report by next year.
A meeting of the Staff Side and government officials to discuss the Terms of Reference suggestions was also held recently.
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