7th Central Pay Commission recommended the fitment ratio as 2.57 for all groups of Central Government employees. The ratio arrived in the following manner.
- Basic Salary as of December 2015: 1.00
- Dearness Allowance (125%): 1.25
- Total (Basic Salary + DA): 2.25
- Increment of 14.29%: 0.32
- Fitment Ratio: 2.57
What is Fitment Ratio?
Fitment ratio is a unique number recommended by the pay commission used for calculating from pre-revised pay to revised pay. The revision of Basic Salary (Basic Pay) by the specific element is the Fitment ratio.
The Fitment ratio benefit is common for all groups of employees working in Central Government Services. The 6th Pay Commission had recommended 1.86 as a fitment factor and the 7th pay commission is recommended 2.57.
How to calculate fitment ratio with basic pay?
If an employee drawing basic pay Rs. 15,500 in 4200 Grade Pay, his/her pay will be fixed as per the recommendations of 7th pay commission as follows:
Rs. 15,500 x 2.57 = Rs. 39,835
Grade Pay 4200 = 7th CPC Level 6
His pay will be fixed Rs. 39,900 (equal or higher cell value of the result in the pay matrix level 6).
Multiplication ratio and Fitment Formula is 2.57
What is Fitment Formula?
The meaning of fitment formula is a linking ratio of the method for revising the pay (Basic Scale) on the recommendation of the pay commission. Conversion of revised pay from pre-revised pay as per the recommendations of pay commission formula is based on the fitment formula. The magic number is a more important reason that the minimum and starting basic scale will be fixed by this factor.
Recommendations on Fitment ratio in 7th CPC Report
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 ratio 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 ratio 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 ratio is being applied uniformly to all employees.
It includes a ratio 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.
Hence the starting point now proposed is 2.57 times of what was prevailing on 01.01.2006. This fitment ratio of 2.57 is being proposed to be applied uniformly for all employees.
Also Check: Central Government Pay Matrix Table 2022 PDF
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