7th Pay Commission: No change envisaged in fitment factor, says Finance Ministry

The non-clarity over various 7th Pay Commission recommendations is lurking over a surfeit of pay scale aspects of central government employees.

There seems to be no pay hike in the short term for the central government employees. (Image: PTI)

7th Pay Commission: The non-clarity over various 7th Pay Commission recommendations is lurking over a surfeit of pay scale aspects of central government employees. In the latest discussion in the Rajya Sabha regarding the implementation of 7th CPC, RS members Ravi Prakash Verma and Neeraj Shekhar raised questions over pay fitment factor and HRA to Ministry of Finance. Citing a hike in the fitment factor, the two Rajya Sabha members asked, ‘whether Government proposes to raise the fitment factor under 7th Central Pay Commission (CPC) from 2.57 for intermediate and lower officials to 2.81 which has been implemented for senior officials under 7th CPC;’ To which the P Radhakrishnan, Minister of State, Ministry of Finance clarified that the fitment factor of 2.57 as recommended by the 7th Pay Commission is already applicable to central government employees, thereby hinting that no change in the pay structure is foreseen. “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” stated P Radhakrishnan. For the House Rent Allowance (HRA), Ravi Prakash Verma and Neeraj Shekhar asked the centre if a hike in HRA from 24% to 30% is on cards due to high rent structures in the metropolitans. “Whether Government would increase the HRA from 24 per cent to 30 per cent of basic salary as it was under 6th CPC in view of non-availability of rented accommodations within 24 per cent of basic salary in metro cities,” questioned Verma and Shekhar seeking if there was good news for the central government employees posted in metropolitans where house rents are as sky high as much as the skyscrapers themselves. P Radhakrishnan clarified that the government had passed a resolution on the House Rent Allowance on 6th July 2017, as per which, “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%.” Given the clarification by P Radhakrishnan on fitment factor and HRA, which are important deciding factors an individual’s take home salary, there seems to be no pay hike in the short term for the central government employees even after considering 7th Pay Commission recommendations.