8th Pay Commission Fitment Factor: 2.57 or Higher ?

Contents

1 8th Pay Commission Fitment Factor: 2.57 or Higher
- 1.1 What is the Fitment Factor?
2 8th Pay Commission Fitment Factor: 2.57 or Higher
3 The Rationale Behind Mishra’s Demand for 8th Pay Commission Fitment Factor

8th Pay Commission Fitment Factor: 2.57 or Higher

As the 8th Pay Commission is on the way, central government employees and pensioners are eagerly watching the 8th Pay Commission Fitment Factor, which plays a key role in determining salary and pension increases. The 7th Pay Commission set the fitment factor at 2.57, and now Shiv Gopal Mishra, the Secretary of the NC-JCM (National Council-Joint Consultative Machinery), is advocating for either keeping this number the same or possibly raising it. This is an important issue for government employees, as it directly affects their pay and pensions.

What is the Fitment Factor?

The fitment factor is a multiplier used to revise the base salaries and pensions of government employees during pay commission revisions. It ensures that the new salary and pension figures are in line with the current economic conditions, like inflation and the cost of living. Essentially, it adjusts the salary structure to maintain purchasing power and reflect the economic environment.

For example, if a government employee’s basic pay was ₹20,000 before the 7th Pay Commission and the fitment factor was 2.57, their revised basic pay after applying the fitment factor would be:

20,000 × 2.57 = ₹51,400 (new revised basic pay)

This is a significant increase, meant to keep up with inflation and the rising cost of living.

Mishra, who has been involved in discussions around the 7th Pay Commission, believes that the 8th Pay Commission Fitment Factor should either be maintained or increased to account for the higher cost of living and inflation. This would ensure that the revised salaries and pensions continue to reflect the current economic realities and provide adequate financial relief to employees and pensioners.

8th Pay Commission Fitment Factor: 2.57 or Higher

In a recent interview with NDTV Profit, Shiv Gopal Mishra made it clear that the 8th Pay Commission should not lower the fitment factor. He stated, “I still believe that the fitment factor should not be less than what the last pay commission had proposed. It has to be at least 2.57, or higher than that.”

This statement carries weight, especially because there have been rumors that the NC-JCM is pushing for a fitment factor of 2.86. If adopted, this would lead to a significant increase in the minimum salary and pension for government employees. For example, the minimum salary could rise from Rs 18,000 to Rs 51,480, and the minimum pension from Rs 9,000 to Rs 36,000.

However, not everyone agrees with this demand. Former Finance Secretary Subhash Garg has called the 2.86 figure unrealistic, suggesting that a lower fitment factor of around 1.92 might be more reasonable.

Despite these differing views, Mishra stands firm on his belief that a fitment factor of 2.57 is the minimum needed for the 8th Pay Commission to ensure government employees are fairly compensated, especially in today’s inflationary times.

The Rationale Behind Mishra’s Demand for 8th Pay Commission Fitment Factor

Shiv Gopal Mishra’s push to maintain the fitment factor of 2.57 comes from his belief that the 7th Pay Commission used outdated benchmarks for its calculations. The 7th Pay Commission based its fitment factor on the resolutions of the 15th Indian Labour Conference (ILC) from 1957 and Dr. Aykroyd’s formula for minimum living wages.

Mishra argues that these models no longer reflect the financial realities of today’s workforce. The 15th ILC, which was created in the mid-20th century, determined the minimum salary based on a “three-unit” family structure: one unit for the husband, 0.8 units for the wife, and 0.6 units for each of two children.

But Mishra points out that today’s families have different needs, especially with more responsibility for elderly parents. Under the Maintenance and Welfare of Parents and Senior Citizens Act of 2022, it’s now both a legal and ethical responsibility for children to care for aging parents. This, Mishra argues, should be reflected by increasing the family units from three to five.

Also, the Aykroyd formula was created decades ago, considering only the prices of basic commodities. It doesn’t take into account modern expenses like digital services and internet costs, which have become essential for today’s families. Mishra believes that the 8th Pay Commission should update these outdated formulas to better reflect the current economic situation.

The Financial Impact of a Higher Fitment Factor

If the fitment factor were raised, as Mishra suggests, the minimum salary and pension for government employees would see a significant increase:

Fitment Factor of 2.57: The base salary would rise from Rs 18,000 to Rs 46,260, and the minimum pension would increase from Rs 9,000 to Rs 23,130.
Fitment Factor of 2.86: The minimum salary would rise to Rs 51,480, and the minimum pension would go up to Rs 36,000.

While the 2.86 proposal might sound ambitious, Mishra’s demand for a fitment factor of at least 2.57 comes from his understanding of the current cost of living, inflation, and the need to ensure fair compensation for government employees.

8th Pay Commission Fitment Factor Conclusion

The discussion about the 8th Pay Commission fitment factor is more than just about numbers; it’s about the changing needs of the workforce and the added responsibilities workers face today. With inflation rising, living expenses changing, and greater family obligations, the fitment factor needs to be updated to reflect these realities.

As the 8th Pay Commission prepares to release its recommendations, asking for a fitment factor of 2.57 or higher seems like a fair request to ensure that government employees are adequately compensated in today’s world.