Top Reasons Behind 7th Pay Commission’s 2.57 Fitment Factor

Written By: Mobin

Government employees eagerly await the 8th Pay Commission, but understanding the 7th Pay Commission’s 2.57 fitment factor is crucial first.

Expectations

The 7th Pay Commission multiplied the 6th CPC’s ₹7,000 minimum wage by 2.57, raising it to ₹18,000. This wasn’t random—it had deep calculations.

Formula

The wage revision was based on the 1957 Indian Labour Conference, considering food, housing, education, and other essential costs.

History

Basic needs (food, fuel, education) totaled ₹17,468. Adding 3% DA (₹524) rounded the minimum wage to ₹18,000.

Components

The 2.57 factor included 2.25 from merging DA with basic pay, while the rest was a real salary hike.

Multiplier

A multiplier applied to old salaries to determine revised pay. Example: ₹10,000 basic pay × 2.57 = ₹25,700 new salary.

Fitment Factor

With rising costs, employees now demand a higher fitment factor in the upcoming 8th Pay Commission.

Future

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