New Delhi. The discussion regarding the 8th Pay Commission is continuously increasing among the central government employees. Many employees are hopeful that there will be a huge increase in their salaries after the implementation of the new commission. Many things are coming to light especially regarding the fitment factor.
Some people believe that if the fitment factor is fixed at 2.5 or more, the basic salary can almost double. But experts say that it is not right to expect doubling of salary just by looking at the fitment factor.
What is fitment factor?
Fitment factor is a coefficient on the basis of which the basic salary of employees is decided in the new pay commission. When the new pay commission comes into effect, first of all the dearness allowance (DA) received till that time is added to the existing basic salary. After this, fitment factor is applied on that total amount and the new basic salary is decided.
For example, at the time of 7th Pay Commission the fitment factor was kept at 2.57. At that time many people thought that their salary would increase a lot. But when the actual calculations were done, the increase turned out to be less than expected.
what is the actual increase
Usually, when the Pay Commission is implemented, dearness allowance is reset to zero and DA starts adding again to the new basic salary. For this reason, the big figure of fitment factor looks attractive, but the change in in-hand salary is not that big.
The experience of previous pay commissions shows that the actual increase in total salary generally ranges between 15% to 30%. If the fitment factor is kept a little higher then this increase can increase slightly, but a situation like doubling of salary does not usually arise.
Effect of other allowances on in-hand salary
The in-hand salary of employees is not determined only by the basic pay. It also includes House Rent Allowance (HRA), Transport Allowance and other allowances. These allowances vary depending on the post, experience and city of the employee. Therefore, the effect of increase in salary of all employees may also be different.
Comments are closed.