What is Fitment Factor or Fitment Benefit?
Fitment Factor is a common multiplication number, which is used for arriving a common result. More than 30 lakh employees are working in Central Government Services.
The 6th Pay Commission recommended 1.86 as Fitment Factor in its report. Whereas, the 7th Pay Commission has recommended common fitment benefit applied for all employees as 2.57.
Fitment Factor in 7th CPC: The starting point for the first level of the matrix has been set at 18,000. This corresponds to the present starting pay of 7,000, which is the beginning of PB-1 viz., 5200 + GP 1800, on the date of implementation of the VI CPC recommendations.
Hence the starting point now proposed is 2.57 times of what was prevailing on 01.01.2006. This fitment factor of 2.57 is being proposed to be applied uniformly for all employees.
The starting point of a Sepoy (and equivalent), the entry level personnel in the defence forces, has been fixed in the Defence Pay Matrix at 21,700. The starting point in the existing pay structure is 8,460 for a Sepoy/equivalent.
The fitment in the new matrix is essentially a multiple factor of 2.57. This multiple is the ratio of the new minimum pay arrived at by the Commission (18,000) and the existing minimum pay (7,000). The fitment factor is being applied uniformly to all employees.
It includes a factor of 2.25 to account for DA neutralisation, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay as on 01.01.2016.
The actual raise/fitment being recommended by the Commission is 14.29 percent.
An identical fitment of 2.57 has also been applied to the existing rates of Military Service Pay (MSP), applicable to defence forces personnel only.