May 132016

Fitment factor Pay Fixation Formula
Under 7th Pay Commission 

In the new central pay commission which was recommended last year and is planned to be implemented from 1st Jan, 2016, the central govt. has fixed a fitment formula for the salary increment of all its employees. The mentioned fitment formula which will be applicable in the 7th CPC is 2.57. This is considered as a major leapt in the salary structures of all the employees who work under the central govt. as well as the central govt. undertaking public bodies. Also there is a calculation of pay fixation of the pay scales of the employees.

Fitment factor Pay Fixation Formula Under 7th Pay Commission

  • Uniform Fitment factor / formula in the 7th pay commission

A uniform fitment factor of 2.57 is being introduced by the central govt. which will benefit all the employees of the central govt. and its undertaking bodies. With this fitment formula, the actual increment of the salaries of the Govt. employees will be 14.29 per cent. This fitment was variable in the previous pay commission. According to 6th pay commission, the employees of the Pay Band – 1 enjoyed a fitment factor of 2.57. Employees belonging to the Pay Band – 2 had a fitment formula of 2.62. While those who belonged to the Pay Band – 3, had fitment factor of 2.67. But in the 7th CPC, the board has announced to have a uniform fitment formula / factor for employees of all pay bands.

  •  What is the rule to calculate new salary after fitment factor implementation?

The salary which will be taken for calculation of revised salary under the new CPC will be the present salary or the salary which the employee will be receiving in the month of CPC implementation. The salary refers to the basic pay i.e. the sum of pay band and the grade pay. The salary will be multiplied by the 2.57 and the result will be considered as the new pay scale.

  • Pay fixation in 7th central pay commission

Pay fixation means determining the salary of the employee after calculation of fitment factor. The fitment factor for 7th CPC will be 2.57 which will be uniform for each group of employees. The product result will be located in the pay matrix of the pay commission. If the result after fitment is not a whole number, then it will be rounded off to the higher value of nearest rupee. After that a level will be selected as per the product result. The level which will be the nearest in higher order will be considered and the new pay will be fixed. This method is called pay fixation which basically is fixing and adjusting the salary to the nearest level in the pay matrix.

  • What are the new recommendations under the 7th central pay commission?

The new pay scale which had an implementation date of1st Jan, 2016 is going to benefit a total number of 47 lakh central govt. employees who are currently doing their service. This new pay commission will also benefit nearly 52 lakh retired employees of central govt. and they will have their pension structures revised. The fitment formula and pay fixation rule will be applicable for all the current serving and retired central govt. employees. The minimum pay which the central govt. employees will get will be Rs. 18,000. After the total implementation of the 7th CPC, the dearness allowance which is 125 per cent will be zero again. The annual increment will remain the same i.e. 3 per cent per annum.

Sl. No. Attributes Related data
1 Date of implementation of 7th CPC 1st Jan, 2016
2 Existing pay commission 6th central pay commission
3 Total no. of beneficiaries 47 lakh current employees and 52 lakh retired pensioners
4 Fitment factor 2.57
5 Salary to be considered for fitment calculation Basic + Grade pay
6 Nature of fitment factor Uniform for all pay bands

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