What is the Fitment Factor?

 

The Fitment Factor is a multiplier that is applied to an employee’s basic pay to arrive at their revised pay after a Pay Commission’s recommendations. In simple terms, it helps determine how much an employee’s salary will increase once a Pay Commission’s recommendations are implemented. This factor is crucial for ensuring that salaries are in line with inflation and the cost of living, while also maintaining fairness across different levels of employees in government service.

The Fitment Factor is calculated by multiplying the current basic pay of the employee by a specific number (the fitment factor), which is recommended by the Pay Commission. The 7th Pay Commission, for example, set the Fitment Factor at 2.57, meaning the basic pay would be multiplied by 2.57 to get the revised pay.

History of the Fitment Factor

The Fitment Factor concept is not a recent one; it has evolved with each Pay Commission. Here's a quick look at how the Fitment Factor has changed over the years:

1.   First Pay Commission (1946): The concept of a standard pay structure was introduced but without a Fitment Factor.

2.   Second Pay Commission (1957): A basic pay revision system was proposed, though no specific Fitment Factor was introduced.

3.   Third Pay Commission (1970): The commission focused on minimum wages and systematic pay scales but still didn’t introduce the fitment factor.

4.   Fourth Pay Commission (1983): Introduced rank pay and discussed the idea of rationalizing pay, though the Fitment Factor was still not formally in place.

5.   Fifth Pay Commission (1994): This commission tried to create more systematic pay scales, but the Fitment Factor idea was only being explored.

6.   Sixth Pay Commission (2006): The concept of the Pay Band and Grade Pay was introduced, and the Fitment Factor was set at 1.86.

7.   Seventh Pay Commission (2016): This commission was a turning point, as it introduced a significant change in the salary structure, setting the Fitment Factor at 2.57. This was aimed at bridging the gap between the private and public sectors.