The 8th Central Pay Commission is likely to take a cautious stance on the fitment factor, with early discussions indicating that the multiplier could remain close to 2.57, the level adopted by the 7th Pay Commission, as concerns over the fiscal burden on the Centre and states take centre stage, according to a report.
The fitment factor, which determines the revised basic pay and pension by multiplying existing basic pay, remains the most closely watched component of the pay revision exercise.
"The exercise is now veering to discussions on the likely range of the fitment factor, consultations with state governments, and assessment of the fiscal impact of revised pay and pension structures," a senior government official aware of the discussions told The Economic Times.
According to the report, the financial implications for both the Union and state governments are expected to play a key role in shaping the Commission's final recommendations.
Employee unions, however, have sought a significantly higher revision. In their submissions, they have demanded a fitment factor of 3.83, which will translate into a minimum basic salary of Rs 69,000.
The memorandum submission process concluded on June 15, bringing to a close formal representations from employee associations, pensioners and other stakeholders. The Commission will now evaluate these submissions alongside feedback from state governments, beginning with Uttar Pradesh, Odisha and West Bengal.
These consultations follow earlier meetings held across Delhi, Ladakh, Jammu and Kashmir, Telangana, Maharashtra and other regions as part of a nationwide stakeholder outreach.
After completing the consultation process, the Commission is expected to consolidate the feedback before preparing its final report, which will determine the revised pay and pension structure for central government employees and pensioners.
The 7th Pay Commission had adopted a fitment factor of 2.57, raising the minimum basic pay from Rs 7,000 to Rs 17,990. The revision also increased the Centre's revenue expenditure to 9.9% in FY2016-17 from 4.8% in the previous fiscal year.
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