8th Pay Commission: FNPO Demands Multi-Level Fitment Factor & 5% Annual Hike
8th Pay Commission: FNPO Demands Fitment Factor & 5% Hike

8th Pay Commission: FNPO Pushes for Multi-Level Fitment Factor and 5% Annual Hike

As preparations for the upcoming 8th Pay Commission gain momentum, the Federation of National Postal Organisation (FNPO) has formally submitted a comprehensive letter to the National Council, which operates under the Joint Consultative Machinery (Staff Side). This significant development, reported by The Economic Times, outlines key demands aimed at reshaping the pay structure for central government employees.

Key Demands in FNPO's 60-Page Letter

The detailed 60-page document, authored by Sivaji Vasireddy, who serves as the Secretary General of FNPO and is a member of the NCJCM (Staff Side), encompasses a wide array of recommendations. These proposals address critical areas such as higher pay scales, revised pay structures, the existing pay matrix system, annual increments, various allowances, and promotion policies. The letter is part of a broader effort to influence the foundational framework of the 8th Pay Commission before its official implementation.

Upcoming Meeting and Draft Process

According to statements made by Vasireddy and cited by ET, the National Council is scheduled to convene a meeting with draft committee members on 15 February. This meeting will follow the receipt of recommendations from various central government employee bodies, including the FNPO. Subsequently, the NCJCM will consolidate these inputs into a final draft of proposals, which will then be forwarded to Ranjana Prakash Desai, the appointed chairperson of the 8th Pay Commission, for further consideration and action.

Major Proposals Highlighted by FNPO

The FNPO's letter outlines several pivotal recommendations that could significantly impact the future pay structure for government employees. Below are some of the key proposals detailed in the submission:

Multi-Level Fitment Factor

One of the central demands put forth by the FNPO is the implementation of a multi-level fitment factor. The organization argues that previous pay commissions have not applied the fitment factor consistently across all employee levels, due to both design and necessity. To address this, the FNPO has proposed specific fitment factors ranging from 3.0 to 3.25, based on the Akroyd formula, as detailed below:

  • Level 1 to Level 5: Proposed fitment factor – 3.0
  • Level 6 to Level 9: Proposed fitment factor – 3.05
  • Level 10 to Level 12: Proposed fitment factor – 3.1
  • Level 13 to Level 13A: Proposed fitment factor – 3.05
  • Level 14 to Level 15: Proposed fitment factor – 3.15
  • Level 16: Proposed fitment factor – 3.2
  • Level 17 to Level 18: Proposed fitment factor – 3.25

5% Annual Increment

In another significant proposal, the FNPO has advocated for replacing the current 3% annual increment with a 5% annual hike. The organization contends that this adjustment would offer multiple benefits, including more meaningful financial progression for employees, a reduction in stagnation-related dissatisfaction, and an alignment of government pay structures with industry standards. This change is expected to particularly benefit Group C and Group D employees, who often face fewer promotion opportunities compared to their Group A and B counterparts. It is important to note that other factors, such as Dearness Allowance (DA) and periodic pay commission revisions, also contribute to salary increases for government staff.

Continuation of 7th CPC Matrix System

The FNPO has also requested that the government retain the 7th Pay Commission matrix system for the upcoming 8th Pay Commission. According to the organization, this system has introduced greater clarity and predictability in pay fixation and progression, making it a valuable framework to continue. By maintaining this structure, the FNPO aims to ensure a smoother transition and more consistent pay management for all central government employees.