Fitment Factor – CG Staff News

3rd PRC with 15% fitment for Executives in BSNL

Sony — Tue, 19 Feb 2019 05:27:12 +0000

BSNL Strike: Government assures to support their reasonable demands
3rd PRC with 15% fitment for Executives in BSNL
Main demands of AUAB include benefits to executives under the 3rd Pay Revision Committee(PRC) with 15% fitment and to non-executives as per the 8th wage negotiations w.e.f. 01.01.2017

Government assures BSNL management and representatives of the unions and associations of BSNL to support their reasonable demands

With reference to the call by All India Unions and Associations of Bharat Sanchar Nigam Limited (AUAB) for a 3-days strike starting tomorrow, the Government (Department of Telecommunications) and BSNL management have been engaged in discussions with representatives of AUAB on ways to address the various demands raised by the unions and associations. It has been continuously emphasized by the Department of Telecommunications (DOT) that Government recognizes the inherent strength and strategic position of BSNL in the Telecom sector in the country. All efforts are being made, and will continue to be made, to make BSNL robust and financially viable.

The main demands of AUAB include benefits to executives under the 3rd Pay Revision Committee(PRC) with 15% fitment and to non-executives as per the 8th wage negotiations w.e.f. 01.01.2017, allotment of 4G spectrum to BSNL, revision of pension for BSNL retirees w.e.f. 01.01.2017 and delinking of same with pay revision for PRC implementation, and deduction of payment of pension contribution by BSNL on actual basic pay instead of on the highest level of the pay scale.

DoT reiterates that positive steps are being taken by the Department in respect of each of these demands. In fact, for allotment of 4G spectrum, pursuant to decision taken in Digital Communications Commission (DCC) meeting held on 05.02.2019, the issue of spectrum allotment for providing 4G services to BSNL is being referred to TRAI to recommend on the issue of administrative allocation, quantum, price and appropriate frequency band. Further action will be taken on receipt of the said recommendation.

In parallel, a comprehensive proposal for revival of BSNL has been prepared, which will be taken up for consideration by competent authorities very soon.

An institutional mechanism in the form of a Coordination Committee comprising senior officers of the DoT, BSNL management, and representatives of AUAB is already functional. Representatives of AUAB have also held meetings with the Additional Secretary (Telecom), DOT in which they have been duly apprised of the progress being made in relation to their demands. BSNL management has issued appeals to its’ employees not to resort to any agitational program at this critical juncture – when the organization is engaged in sincere and serious efforts to protect and enhance its’ market-share, and when any disruption in services can only adversely impact the interests of BSNL and its’ customers, employees and other stakeholders.

Government wishes to re-emphasize that it will continue to engage with the BSNL management and representatives of the unions and associations of BSNL, to support their reasonable demands, and to guide the organization towards a revival. Government also hopes that BSNL employees and officers will not jeopardize the interests of their organization by going on strike at a time when it is in their own interest to protect their customer-base and revenue by providing uninterrupted, high-quality services.

Source: PIBSimilar Posts:

7th CPC Fitment and HRA – No Change Therein is Envisaged

Sony — Sat, 22 Dec 2018 06:29:12 +0000

7th CPC Fitment and HRA – No Change Therein is Envisaged

7th Pay Commission Fitment Factor and House Rent Allowance – No Change Therein is Envisaged

In written reply to a question in Rajya Sabha on 11th December 2018 , Minister of State for Finance Shri P.Radhakrishnan said no change in 7th CPC Fitment Factor and House Rent Allowance.

Increase in Pay Fitment Factor and HRA

“The fitment factor for the purpose of fixation of pay in the revised pay structure based on the recommendations of the 7th Central Pay Commission is 2.57 which is uniformly applicable to all categories of employees. As the same is based on the specific and considered recommendations of the 7th Central Pay Commission, no change therein is envisaged.

The Government vide Resolution dated 6th July, 2017 decided that HRA shall be revised to 27%, 18% and 9% of Basic Pay in X, Y and Z cities when Dearness Allowance (DA) crosses 25% and further to 30%, 20% and 10% of Basic Pay in X,Y and Z cities when DA crosses 50%.”

Current Rates of House Rent Allowance for CG Employees

7^THCPC HRA RATES W.E.F. 1.7.2017
City Classification	HRA Rates
‘X’ Cities	24% of Basic Pay
‘Y’ Cities	16% of Basic Pay
‘Z’ Cities	8% of Basic Pay

7th Pay Commission HRA and Transport Allowance

Cabinet approval on 7th CPC House Rent Allowance (28.6.2017) : HRA is currently paid @ 30% for X (population of 50 lakh & above), 20% for Y (5 to 50 lakh) and 10% for Z (below 5 lakh) category of cities. 7th CPC has recommended reduction in the existing rates to 24% for X, 16% for Y and 8% for Z category of cities.

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Demand of Central Govt employees to increase the Fitment Factor recommended by 7th CPC

Sony — Wed, 14 Nov 2018 09:32:08 +0000

Demand of Central Govt employees to increase the Fitment Factor recommended by 7th CPC

The demand to increase the 2.57 Fitment Factor along with the hike of 14.29 percent is growing among the Central Government employees

The 900-page long report of the 7th Pay Commission was submitted to the government on November 19. One of the most important recommendation on the report is the Fitment Factor. It is the most important factor deciding the hike of salaries of the Central Government employees.

Fitment Factor is used to calculate the revised basic pay of existing employees with effect from the implementation of 7th CPC. The new revised basic pay of a Central Government employee is calculated by multiplying his/her cureent (Pre-revised) basic pay with the Fitment Factor.

The 7th Pay Commission has recommended a uniform Fitment Factor of 2.57 for all. The actual raise/fitment recommended by the Commission is 14.29 percent only. The report says that the fitment includes a factor of 2.25 on account of DA neutralisation, assuming that the rate of D.A. would be 125 percent at the time of implementation of the new pay.

The 7th Pay Commission has evolved a new pay fitment table by merging the existing Grade Pay and Pay Bands for all group of Central Government employees, which is called as Pay Matrix Table. The Pay Matrix comprises two dimensions. It has a “horizontal range” in which each level corresponds to a ‘functional role in the hierarchy’ and has been assigned the numbers 1, 2, 3, and so on till 18. The “vertical range” for each level denotes ‘pay progression’ within that level. These indicate the steps of annual financial progression of three percent within each level. The starting point of the matrix is the minimum pay which has been arrived based on 15th Indian Labour Congress (ILC) norms or the Aykroyd formula.

On recruitment, an employee joins at a particular level and progresses within the level as per the vertical range. The movement is usually on an annual basis, based on annual increments till the time of their next promotion. When the employee receives a promotion or a non-functional financial upgrade, he/she progresses one level ahead on the horizontal range.

The Pay Matrix chart has included a number of Fitment Factors. 6 types of Fitment Factor, including 2.57, 2.62, 2.67, 2.72, 2.78, and 2.81, have been listed. Under the heading of ‘Index,’ all the Central Government employees have been divided into 18 categories. Since different Fitment Factors have been used for all these categories, it leads one to believe that the new factor will apply for the existing employees too.

Criticism has come from all the circles over the addition of a mere 14.29%, leading to 2.57, while the employees were currently drawing a dearness allowance of 125% of their basic pay. The minimum wages have been decided on this criterion alone (the 6th Pay Commission had fixed the minimum wages as Rs.7000. The 7th CPC minimum wages of 18,000 has been arrived at by multiplying the previous number by 2.57).

One might remember that similar requests were presented at the time of the 6th Pay Commission too. The commission had recommended the Fitment Factor of 1.74, but, due to constant pressure from the NC JCM Staff Side members, it was increased to 1.86. The demand to increase the 2.57 Fitment Factor along with the 14.29 percent hike is growing among the Central Government employees.

(First published this article on 24.12.2015 11.40pm)

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Increase of Fitment Factor from 2.57 to 3.68 under 7th CPC?

Sony — Mon, 13 Aug 2018 15:03:37 +0000

Increase of fitment factor under 7th Pay Commission
Increase of fitment factor from 2.57 to 3.68 under 7th CPC?
Is Government Contemplating to Increase Fitment Factor from 2.57 to 3.68 under 7th CPC? – Parliament Q&A

Increase of fitment factor under 7th CPC

RAJYA SABHA
UNSTARRED QUESTION NO-2273
ANSWERED ON-07.08.2018

Shri Ravi Prakash Verma
Shri Neeraj Shekhar

(a) whether Government is contemplating to increase fitment factor from 2.57 to 3.68 under 7th CPC to all pay levels, as demanded by employees associations;

(b) if so, the details thereof and by when it would be announced; and

(c) if not, the reasons for betrayal from assurances given by Home Minister and Railway Minister etc. to employees associations in 2016?

Also read: Minimum Pay increased to 21000 – No Scope Anymore to Continue this Story

Also read: 7th CPC Minimum Wage and Fitment Formula – NJCA meeting on 3.7.2018

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI P. RADHAKRISHNAN)

(a) to (c): The Minimum Pay of Rs. 18,000 p.m. and Fitment Factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration.

Authority: https://rajyasabha.nic.in/

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Central Govt should increase Minimum Pay and Fitment formula – Karnataka COC

Sony — Tue, 29 May 2018 12:39:36 +0000

Central Govt should increase Minimum Pay and Fitment formula – Karnataka COC

Revision of Minimum Pay and Fitment formula due to increased revenue collections of the Central Government

Comrades,
Today none of the 7th CPC related demands of Central Government Employees are settled. The assurance given by the Group of Ministers to the NJCA leaders regarding increase in Minimum Pay and Fitment formula is in paper even after a lapse of 20 months. Now the Finance Minister has replied in Parliament that “no change in Minimum Pay and Fitment formula is at present under consideration”.

To avert the 11th July CG employees strike the Hon’ble Prime Minster had instructed the group of Hon’ble Ministers including Shri Rajnath Singhji, Hon’ble Home Minister, Shri Suresh Prabhuji , Hon’ble Railway Minister and Shri Arun Jaitelyji , Hon’ble Finance Minister to hold discussions with the Staff Side (JCM) on 30th June 2016 and the Shri Arun Jaitelyji , Hon’ble Finance Minister had published a written assurances in the Government website on 6th July 2016 leading to deferment of the strike .

Pay Commission Objective: It is the endeavour of every pay commission to ensure that the pay and allowances of employees should be ‘fair and reasonable’. The pay structure should also motivate the employees to reasonable levels of performance in the tasks assigned to them, so that the general public derive the benefit of their service as intended.

Our demand of revision of Minimum Pay and Fitment formula is quite justified.

Comparison of earlier wage hike we can observe that the fitment factor of 2.57 times is the lowest comparing to other pay commissions. If we make a study of earlier pay commission.

Pay Commission	Year	Minimum wage (old)	Minimum wage (revised)	Increase
2^nd CPC	1959	Rs 55/-	Rs 80/-	1.45 times
3^rd CPC	1973	Rs 80/-	Rs 196/-	2.45 times
4^th CPC	1986	Rs 196/-	Rs 750/-	3.82 times
5^th CPC	1996	Rs 750/-	Rs 2550/-	3.40 times
6^th CPC*	2006	Rs 2550/-	Rs 7000/-	2.74 times
7^th CPC*	2016	Rs 7000/-	Rs 18000/-	2.57 times

Comparative picture of pay of Central Government and State Government in regards to minimum wage as on 1.7.2017

Many of the State Governments are following the Central Government pay scales, but a few state Governments have improved upon the Central Government pay scales. The examples are as under:

Government Agency	Group “D” Basic pay in Rs	Add Skill 25% from Group “D” to Group “C”	Group “C” Basic Pay in Rs	DA %	Add DA Amount in Rs	Basic Pay in Group “C” in Rs
Govt. of India		Nil	18000	5	900	18900
Andhra Pradesh & Telangana	13000	3250	16250	24.1	3916	20166
Kerala	16500	4125	20625	14	2887	23512
Karnataka	17000	4250	21250	Nil		21250

The financial position of the Central Government is very good. Even the GDP (Gross Domestic Product) has shown increase in last few years which is around 7% , the Indian economy is fastest growing and placed 7th in the world ( which is at 2,250.987 billions of $ ), comparing to wages paid in the world our wages are at lower level. The Government fiscal budget deficit equal to 3.50 percent of the country’s Gross Domestic Product in 2016. Compared to 2008 where the fiscal deficit was at 7.8 %, but today the fiscal deficit is contained at 3.5%. This is also a healthy sign of the economic status of the Central Government financial status, the budget fiscal deficit is always below 4%.

Direct tax collections in 2017-18 at Rs 9.95 lakh crore, exceeded the revised budgetary target of Rs 9.8 lakh crore. Also, 6.84 crore income tax returns filed in the year against 5.43 crore in the previous year signalling a rise of 26 % . A net of 99.5 lakh new assesses were added to the tax net.

Net collection from corporate tax went up 17.1 per cent while that from personal income tax rose 18.9 %.

The revenue collection from Goods and Services Tax (GST) exceeded Rs 1 lakh crore in April 2018, GST revenue collected in April 2018 came at Rs 1,03,458 crore.

With the improved economic climate, introduction of e-way bill and improved GST compliance, GST collections would continue to show a positive trend.

The wage bill of the Central Government on in its employees is less than 10% or 3.4% of the GDP, which is less compared to various countries world wide .

Vacancy of the Central Government is about 15 % , more than 4 lakhs vacancies are existing in the Central Government the work load is being carried out by the existing employees. The Government being a model employer should pay for its employees and motivate them to work more for implementation of its policies.

Hence due to the improved revenue earning of the Central Government, as assured to the staff side JCM by the Group of Ministers in respect of increase of Minimum Pay and Fitment formula, the Central Government should increase the Minimum Pay and Fitment formula.

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