**Multiplication Factor / Fitment Formula recommended by 7th Pay Commission**

**7th Pay Commission recommended the Multiplication Factor is 2.57**

**Fitment** : The starting point for the first level of the matrix has been set at ₹18,000. This corresponds to the starting pay of ₹7,000, which is the beginning of PB-1 viz., ₹5,200 + GP 1800, which prevailed on 01.01.2006, 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. It includes a factor of 2.25 on account of DA neutralisation, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay. Accordingly, the actual raise/fitment being recommended is 14.29 percent.**

—————————————————————————–

**7th Pay Commission Fitment Table** : National Council JCM Staff Side suggested in their memorandum regarding fitment formula as follows…

**Fitment Formula**

The fitment formula suggested by all the earlier Pay Commissions was not reflective of the actual revision of wages. The employees who were on rolls on the date of implementation of the Commission’s recommendation comparatively received lesser benefit than the new entrants. Amongst the existing employees also, more benefit accrued to persons with lesser service period. This happened due to the rejection of the demand of the Staff Side to have point to point fixation.

The anomalous situation was addressed during the discussion the Staff Side had with the Group of Ministers in September 1997, over the implementation of the recommendations of the 5th CPC. In the place of 20% of the basic pay recommended by the 5th CPC as fitment formula the Staff Side could negotiate and settle it at 40%. The said agreement brought about near total satisfaction over the revision benefit amongst all sections of employees. The said 40% benefit brought about uniform multiplication factor too.

Taking these in to consideration, we suggest that the multiplication factor (26000/7000 = 3.7) may be applied uniformly in all the cases to arrive at the revised pay in the new scale of pay.

Aruna says

My basic on 1/1/16was 25610+6600(grade pay) then on 6/1/16i got an increment of family planning TT operation.

Now if new basic is calculated on basic on 1/1/16 then where will my increment go.

Should I add it after fixation in the new matrix.

Please respond as I am not getting any guidelines regarding this matter from anywhere.

Thanks

RPSDinkar says

Pay in pay band Rs. 23410 / Grade pay Rs. 5400 / scale of pay band 9300–34800. What will be my basic pay as on 01-01-2016.

Mathew says

I was promoted as TGT in June 2006, now I have completed 10years in this grade. My present basic pay is 56900. What will be my new pay after implementing MACP. In July 2017.

jjogesh Chandra Mahajan says

My date of retirement is 31.8.2003 with last Pay Drawn Rs.7900/- in the Scale of Pay Rs.6500-200-10,500 [Gazetted Gr.B] ( 5th CPC) .My Basic Pension as on 01.01.2006 was fixed as Rs.8724/- & on 01.01.2016 on 7 CPC my Basic Pension was fixed on multification factor (2..57) as Rs.22,421/-. Kindly confirm my Basic Pension as per Min. of Personnel, PG & P, DoP&PW Order dt. 12.5.2017. As per g..servants.com, the result on the basis of my aforesaid data, my revised pension payable has been reckoned as Rs.24,500/-.Kindly confirm whether the amount is correct. If not, the correct position with mode of fixation may kindly be intimated.

admin says

Mr.Laman, Revised Pay Rules said below…

”

5.1.29 The pay in the new pay matrix is to be fixed in the following manner:

Step 1: Identify Basic Pay (Pay in the pay band plus Grade Pay) drawn by an employee as on

the date of implementation. This figure is ‘A’.

Step 2: Multiply ‘A’ with 2.57, round-off to the nearest rupee, and obtain result ‘B’.

Step 3: The figure so arrived at, i.e., ‘B’ or the next higher figure closest to it in the Level

assigned to his/her grade pay, will be the new pay in the new pay matrix. In case the value of

‘B’ is less than the starting pay of the Level, then the pay will be equal to the starting pay of

that level.”