In a recent development, the Central Government has increased the Dearness Allowance (DA) for employees and pensioners by 4%, bringing it up to 50%. With this raise in DA, there is a growing demand for the implementation of the 8th Pay Commission, and discussions regarding a potential increase in the Fitment Factor have gained pace. A letter has been addressed to the government urging the formation of a new pay commission to address salary concerns.
The 7th Pay Commission, constituted in 2013, made its recommendations effective in 2016. Traditionally, a new pay commission is formed approximately every ten years, and discussions about the formation of a new commission or changes in the salary structure are now becoming prominent in 2024.
Fitment Factor Hike: A Ray of Hope for Employees
The Fitment Factor plays a crucial role in determining the salaries of central government employees. Currently set at 2.57, it forms the basis for calculating the pay matrix as per the 7th Pay Commission. The demand to increase the Fitment Factor to 3.68 or higher has been persistent among employees, aiming for substantial salary hikes.
It is speculated that discussions regarding the Fitment Factor might lead to an increase in basic salaries, potentially reaching INR 21,000 or even INR 26,000. While there is no official confirmation, the government’s interim budget presented on February 1, 2024, indicated a focus on discussions about the Fitment Factor.
Could the Fitment Factor Soar to 3.68% Before the Lok Sabha Elections?
As of now, the Fitment Factor stands at 2.57, resulting in a basic salary of INR 18,000. Employee unions have been advocating for an increase in the Fitment Factor to 3.68%, which could elevate the basic salary to INR 26,000. The government might consider implementing this change from 2026 onwards. Such an adjustment would lead to a significant increase in basic salaries, benefitting employees.
Employee Associations Press for the 8th Pay Commission: Government’s Response Awaited
With the DA reaching 50%, employee associations are pushing for the formation of the 8th Pay Commission before the Lok Sabha elections in 2024. Despite the government’s recent statement denying immediate plans for a new commission, the pressure from employee unions persists.
In a recent letter, the Indian Railway Technical Supervisors Association (IRTSA) addressed the Finance Minister, Nirmala Sitharaman, highlighting the need to review the Fitment Factor and salary conditions without waiting for the completion of the ten-year cycle. The association argues that discussions on the Fitment Factor could occur before the stipulated period, potentially leading to a faster implementation of the 8th Pay Commission.
While the government has clarified its stance, the demand for a new pay commission or revisions in the existing salary structure remains a focal point for employee unions. As the Lok Sabha elections approach, the government’s response to these demands will be closely monitored by central government employees across the country.