How the Fitment Factor Works

 

Let’s take a closer look at how the Fitment Factor affects an employee’s salary:

For example, if an employee has a basic pay of ₹15,000, under the 7th Pay Commission, the Fitment Factor of 2.57 would be applied:

New Salary Calculation:

  • Basic Pay = ₹15,000
  • Fitment Factor = 2.57
  • Revised Pay = ₹15,000 × 2.57 = ₹38,550

Thus, the salary of the employee would be revised to ₹38,550. This multiplication process ensures that the pay is adjusted according to economic conditions, inflation, and government policy.

Why the Fitment Factor is Important

1.   Ensures Fairness Across Ranks: The Fitment Factor ensures that all employees in different pay levels receive a reasonable increase in their salaries, thus ensuring fairness.

2.   Takes Inflation into Account: With inflation continuously impacting the cost of living, the Fitment Factor allows pay to be adjusted in a manner that reflects these economic changes.

3.   Simplifies Salary Calculations: Without the Fitment Factor, salary calculations would be complex and varied. The factor standardizes the revision process, making it easier to manage.

4.   Bridges the Gap Between Private and Public Sector: The Fitment Factor works towards ensuring that government salaries are competitive enough to attract talented individuals, while also ensuring that public sector employees are not underpaid when compared to their counterparts in the private sector.

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