7th Pay Commission: Latest update of fitment factor, to be raised 3 times

While the pay hike would bring about some cheer for CG employees, the bad news is that there will be no arrears.

The big news after the recommendations of the 7th Pay Commission were cleared is the hike in basic minimum pay. For this to happen, the government will have to raise the fitment factor to 3 times.

Sources confirm that the government will raise the fitment factor to 3 times. This would mean the minimum pay of the Central Government employees will go up to Rs 21,000 from the existing Rs 18,000.

Latest updates on fitment factor

The government has decided that the fitment factor would be raised to 3 times from 2.57 times. This would come into effect from January 2018 onwards. There has been a long standing demand that the existing pay is not sufficient with the prices rising, it is only making matters worse.

Confirmed, no arrears

While the pay hike would bring about some cheer for CG employees, the bad news is that there will be no arrears. Once the hike is approved, the employees would have hoped that they would have got arrears as well. However the government is firm that the pay hike would be in effect from January 2018 and no arrears would be paid on the same.

Variable pay

The fact that the pay hike would see CG employees drawing a minimum pay of Rs 21,000 may bring some cheer. They would have expected that the fitment factor is raised to 3.68 times. This would have meant that the CG employees get a minimum pay of Rs 26,000. While this is unlikely to happen, the good news is that the pay would be variable. The government had said that the variable pay is something that it is contemplating keeping in mind the fluctuating markets and inflation.

7th Pay Commission, not the final word

The 7th Pay Commission had recommended a pay hike of Rs 18,000. However it is not the final word. The government said that it would hike the minimum pay after holding talks with all stake holders. The assurance was made by Arun Jaitley, the Finance Minister of India.

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