7th Pay Commission: Govt to take big decision on fitment factor in July? Minimum wages likely to be raised to Rs 26,000

The central government employees unions have long been demanding for hiking minimum pay of Rs 18,000 to Rs 26,000 and fitment factor be raised from 2.57 times to 3.68 times under 7th pay commission.

New Delhi: 7th Pay Commission fitment factor latest update: The endless wait of central government employees who have been pressing for the hike fitment factor may be up for some good updates next month. If media reports are to be believed, the much anticipated discussion on hiking the fitment factor of central government employees under the 7th Pay Commission might be taken up next month.

As per Zeebiz website, a draft will be prepared on the fitment factor hike which will be shared with the government. Once the draft is submitted, a meeting over the issue will reportedly be held by the end of July. Once the fitment factor is hiked, the salary of central government employees too will increase substantially.

Several media reports have said that the government might soon give its nod on raising the fitment factor. The central government employees unions have long been demanding for hiking  minimum pay of Rs 18,000 to Rs 26,000 and fitment factor be raised from 2.57 times to 3.68 times.

If the government makes announcement regarding the hike in fitment factor of central employees, then their salary will consequently increase. In fact, with the increase in fitment factor, the minimum wage will also increase. Employees are currently getting salary under fitment factor on the basis of 2.57 percent, which if increased to 3.68 percent, there will be an increase of Rs 8,000 in the minimum salary of the employees. This means the minimum pay of the central government employees will be hiked from Rs 18,000 to Rs 26,000. 

Check out this assumptive salary calculation post the hike in fitment factor under 7th Pay Commission

If the fitment factor is raised to 3.68, the basic salary of the employees will become Rs 26,000. Right now, if your minimum salary is Rs 18,000, then excluding allowances, you will be getting Rs 46,260 (18,000 X 2.57 = 46,260) according to the 2.57 fitment factor.

Now, if the fitment factor is 3.68, then your salary will be Rs 95,680 (26000X3.68 = 95,680).

The Union Cabinet had in June 2017 approved recommendations of the 7th Pay Commission with 34 modifications. The new scales of pay provided for entry-level basic pay going up from Rs 7,000 per month to Rs 18,000, while at the highest level i.e. Secretary, went up from Rs 90,000 to Rs 2.5 lakh. For Class 1 officers, the starting salary was at Rs 56,100.