By Admin 
- Discussion on 8th Pay Commission intensifies, team is visiting states.
- It is important to assess the burden of fitment factor on the government treasury.
- Employees are demanding 3.83 factor, the government will take the decision cautiously.
8th Pay Commission Fitment Factor News: Crores of employees and pensioners in the country are eagerly waiting for the 8th Pay Commission. The series of discussions on this has also started intensifying. Meanwhile, the Pay Commission team is visiting different states and talking face to face with employee organizations, unions and officials.
Now the thing to be seen is that in the end, what will be the stand of the Commission and the government on the fitment factor? Even though no official decision has been taken on this yet, the countrywide meetings and initial discussions are indicating that in view of the huge burden on the government exchequer, the Commission may adopt a balanced and cautious approach regarding the fitment factor.
What is the demand of the employees?
Various unions, including the National Council (NC-JCM) and Railways, have demanded keeping the fitment factor between 3.15-3.83. If the fitment factor is fixed at 3.83, then the minimum basic salary will directly increase from Rs 18000 to Rs 68940. However, in view of the increasing pressure on the exchequer, the government may fix the initial fitment for 50 lakh employees and 69 lakh pensioners in the range of 1.83-2.28.
According to the ET report, while talking about this, a senior official concerned has said that now in the final round, the focus is on assessing the possible range of fitment factor, negotiations with state governments and the financial impact of the revised pay and pension structure. Assessment of the financial burden on the central and state governments can play a decisive role in deciding the final structure of salary and pension.
Financial Burden Assessment
Increase in fitment factor not only increases the salary but also increases the pension. On top of that, there is also a huge separate expense for arrears. In such a situation, keeping in mind fiscal prudence, the government can choose a formula between 2.28-2.86. If the fitment factor is fixed at 2.28, then the basic salary will increase by about 34.1%, which will be Rs 41000. Of course, the government can adopt a cautious approach regarding the fitment factor because even a slight variation in it has a big impact on government expenditure.
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