Central government employees can get important assistance from the government. The Government may re-evaluate the Fitting Factor determination at the request of the Central Employees Unions. The government has been constantly urged by the employee unions to increase the fitting factor. There has been a demand by the central employees to increase the fitting factor from 2.57 times to 3.68 times.
The fitment factor is the revision of the basic pay by the specific element. All categories of employees in central government services get the benefit of fitment factor.
The existing minimum wage for central employees as per the fitment factor is Rs. 18,000. At present the fitting factor is 2.57 times. Central employees, however, want it to be increased to 3.68 times. In this case the minimum wage for central employees would be Rs 26,000. If the fitting factor is increased to three times, the wages of employees can increase dramatically. The basic pay of a central employee is Rs 18,000; His total compensation, excluding allowances, is Rs 18,000 X 2.57 or Rs 46260. Remuneration will be Rs. 26000 X 3.68, or Rs. 95680, if the wishes of the employees were approved.
The fitting factor has a significant impact on how much central workers are paid. According to the recommendations of the Seventh Pay Commission, the remuneration of central employees is decided by their basic pay, fitment factor and allowances. It is this element that doubles or even triples the salaries of central employees. As per the recommendations of the 7th Pay Commission, at present the fitment factor is 2.57.
With effect from July 1, 2022, the central government has already increased the Dearness Allowance (DA) for central employees from 34 per cent to 38 per cent. As a result they have got significant relief from inflation. However, these employees are currently awaiting an increase in the fitting factor.