The 7th Central Pay Commission (7th CPC) refers to the Indian government-appointed body responsible for reviewing and recommending changes to the salary structure and compensation of central government employees in India. The “fitment factor” is a key concept in the recommendations made by the pay commission. It is used to calculate the new pay levels for government employees based on the existing pay levels. In this article we will know reason behind discriminatory 7th CPC fitment factor for officers 2.81 and for Jawans 2.57 .
The fitment factor is essentially a multiplication factor that is applied to the existing basic pay of an employee in order to determine their new basic pay in accordance with the recommendations of the pay commission. It takes into account factors such as inflation, cost of living, and various economic considerations.
For instance, if the fitment factor is 2.57 to 2.81 depending on the rank/designation, it means that the new basic pay of an employee would be 2.57 – 2.81 times their current basic pay.
The process of determining the fitment factor involves analyzing various economic indicators, price indices, and other relevant data to arrive at a multiplier that adequately addresses the changes in economic conditions since the previous pay commission. The fitment factor is not a fixed number and can vary from one pay commission to another, based on the prevailing economic circumstances and other factors.
It’s important to note that the specific details of how the fitment factor is calculated and decided upon by the pay commission are not always transparently disclosed in public reports. The commission takes into account a variety of economic factors, inflation rates, GDP growth projections, and other relevant data to arrive at a recommendation for the fitment factor. The government then reviews these recommendations and makes a decision on whether to accept or modify them. However, finally the multiplication factor has been introduced wef 01.01.2016.
Clarification by Govt on 7th CPC Discriminative Fitment Factor
Ministry of Defence, DESW has recently issued a clarification against various matters/grievances raised by ESMM Associations as mentioned below :-
Grievance of the Exservicemen Association :-
Fitment factor for JCO/OR is only 2.57 and for Officers it is 2.81
Reply of the Department of Exservicemen Welfare, Ministry of Defence :-
The 7th CPC has applied an ‘index of rationalization while making enhancement of levels from Pay Band 1 to 2, 2 to 3 and 3 onwards on the premise that role, responsibility and accountability increases at each step in the hierarchy. At the PB-1, this index is 2.57, increasing to 2.62 for personnel in PB-2 and further to 2.67 from PB-3. Recognizing the significantly higher degree of responsibility and accountability at levels corresponding to Senior Administrative Grade, the entry pay is recommended for enhancement by a multiple of 2.72. The same multiple is also being applied at the HAG and HAG+ levels. At the apex level the index applied is 2.81 and for the Service Chiefs/Cabinet Secretary the index has been fixed at 2.78.
You may read the original letter issued by MoD which clarifies the discrimination including other issues of the Exservicemen as mentioned below :-
https://www.desw.gov.in/sites/default/files/Pension-Policy-20.07.23.pdf