8th CPC: Fitment factor vs higher increment rate?

During the 8th Pay Commission's consultations in Chennai, employee and pensioner bodies have been advocating for a higher annual increment rate for central government employees. Currently, the increment rate stands at 3%. The 8th Pay Commission officials are deliberating on this demand along with other issues related to pay, pension, and working conditions.

Employee associations, including the All India New Pension Scheme Employees’ Federation (AINPSEF), the National Council of the Joint Consultative Machinery (NC-JCM), the All India Defence Employees Federation (AIDEF), and the Federation of National Postal Organisations (FNPO), have submitted memoranda to the 8th Pay Commission with recommended annual increment rates between 5% and 7%.

The AINPSEF, for instance, has suggested a 7% annual increment rate, arguing that it can double the salary in just 6-7 years, whereas the current 3% increment rate would take 10 years to achieve the same outcome.

A key concern raised by employee associations is whether a system can exist where employees can rely on a high increment rate without the need for a fitment factor. They argue that if the annual increment rate is high, employees do not have to wait for 10 years to see a significant raise in their payouts in a new pay commission. However, the question remains whether a strong salary push in the form of a fitment factor is necessary for all employees, or if high annual increments alone can suffice.