7th Pay Commission: Why Central Government Employees Not Happy With Current Salary Status

While the government employees have not objected to the process, the concerns have been raised about the actual amount that has been cleared.

7th Pay Commission: Citing high inflation rate, Central government employees have been demanding an increase in the fitment factor from 2.57 times to 3.68 times, which means the employees want an amount of Rs 26,000 against the current value of Rs18,000.

It has been sometime that the Central and State government employees have been demanding an increase beyond the recommendations of the 7th Pay Commission. While the government employees have not objected to the process, the concerns have been raised about the actual amount that has been cleared. Given higher inflation rate, employees have been demanding a hike in fitment factor. According to media reports the Prime Minister may announce an increase in the fitment factor on August 15.

The Centre increases the salaries of its employees by surging the fitment factor. Fitment factor is a number given by 7th Pay Commission with which the basic pay in 6th regime is multiplied to work on new basic pay. Fitment factor formulated by 7th Pay Commission is 2.57.

Recently, several state governments including Jammu and Kashmir, Tripura, Madhya Pradesh and Uttar Pradesh, have given the benefits of the 7th Pay Commission to their employees.

On 7th pay commission fitment factor recommendation, the report states: “The Commission has designed the pay structure in such a manner that the pay progression recognises the importance of vertical relativities and also assigns a reasonable basis to such progression. This has been done by assigning a uniform fitment factor of 2.57.”

7th Pay commission report stated: “One recurrent theme in the representations of various associations relates to ‘equity’ or ‘Equal Pay for Equal Work.’ Ideally, the remuneration package should establish horizontal equity: employees should feel that their pay is comparable with the remuneration structure of similarly placed positions outside their organization. The employees should also feel that the pay structure shows linear progression pattern and thus the notion of vertical equity is also maintained.”

Fitment factor of 2.57 time was recommended by the 7th pay commission. The report said, “After considering all relevant factors the Commission is of the view that the minimum pay in government recommended at Rs 18,000 per month.”