8th Pay Commission: Real Fitment Factor is over 2.57 for most pay bands. Employees seek a change

While the 7th Central Pay Commission (CPC) recommended a uniform fitment factor of 2.57 for employees, the actual fitment factor for many is often higher due to the application of the index of rationalisation.

The index of rationalisation ensures that employees in the higher pay bands of the 7th CPC pay matrix get higher salaries. More so because the responsibilities and accountability are higher for employees at the higher pay level.

"...with enhancement of levels from Pay Band 1 to 2, 2 to 3 and onwards, the role, responsibility and accountability increase at each step in the hierarchy," the 7th CPC noted.

Thus, the actual fitment factor of an employee in the entry Pay Band (PB)-1 is 2.57, which increases to 2.62 in Pay Band-2 and further to 2.67 in Pay Band-3. At very high levels in the job hierarchy, the actual fitment factor goes up to 2.78-2.81.

While justifying the need for an index of rationalisation, the 7th CPC said,"...there is no denying that officers at higher levels shoulder maximum responsibility and accountability and hence should be compensated accordingly. In light of this, the Commission has accorded a slightly higher index of rationalisation at the level of Senior Administrative Grade and above."

Employees seek a change

Currently, there are eight pay bands for Central Government employees based on the recommendations of the 7th CPC. The 2.57 fitment factor is applicable only in PB-1 (₹5200-20200).

Central Government employees have been demanding a reduction in this pay gap for a long time. Even as the 8th CPC is about to be officially set up, the NC-JCM is once again demanding a uniform fitment factor to reduce the gap in minimum and maximum salaries.