Download 10th PRC Report for AP & TS – How to Calculate Fitment

Download 10th PRC Report, One of the terms of reference fixed for the PRC is to examine, as to what extent the existing Dearness Allowance may be merged in the pay as to evolve consequent new set of pay scales merging Dearness Allowance therein and suggest the mode of pay in the revised pay scales. Regarding the merger of Dearness Allowance with the basic pay, the issue has been  discussed in the earlier chapter.    

The revised scales are worked out based on merger of Dearness Allowance with Basic pay and fixation of minimum pay based on certain accepted principles which are discussed earlier.  

The new master scale is evolved by arriving at the minimum of the scale and the maximum of scale and working out reasonable increments at various stages between.      

An important aspect of Revised Pay Scales is the ‘Fitment’ formula for determining the pay of existing employees  in the Revised Pay Scales, to confer reasonable monetary benefit on the employees.

The 1978 Pay Revision Commission recommended for weightage of one increment for every 3 years of service, based on the service rendered by the employees.

In subsequent  revisions  of 1986, 1993, 1999, 2005, 2010 the Commission preferred  fixation  of  a  uniform  percentage  as  the  criteria  for fitment in the Revised Pay Scales as it will spread the advantage evenly for all employees. While recommending the new pay scales, the successive PRCs also took  into consideration the financial position of the State Government.

Major Associations have now represented for percentage of fitment on Basic pay ranging from 40% ‐ 60%. Some of the Associations have represented for service weightage as fitment for determining the pay scales.

The Telangana Gazetted Officers Central Association in their representation  has stated that during the period from 1.7.2008  to 31.7.2013, the accumulated inflation had increased to 104.9% where as the Dearness Allowance sanctioned to State Government employee was just 63.344% and as such there was a loss of more 41.596%.  

There was another loss of 27.504% in the calculation of Dearness Allowance as it was based on the basket of family living survey conducted in the year 1999‐2000 and since them the consumption basket  had totally  changed  and thus  the quantum  of fitment  of 69.10%  was essential for the employees to have a comfortable living without financial hardship.

The A.P. Non‐Gazettted Officers Association in their representation  has sought for a fitment  of 69% on Basic pay on the basis of difference  in the  rate  of inflation  between  2012‐13  and  2013‐14,    using  the following formula.

i) D.A.as on 1.1.2013  = 54.784%
ii) Fitment required = Difference in inflation X D.A on 1.1.2013
Average inflation in 2012‐13
1.305/10.43   X 54.784 = 68.54 or 69%

The Progressive  Recognized  Teachers  Union, AP(PRTU)  in their memorandum has requested for a fitment of 60% on  Basic pay by calculating a rise of 58% in the consumer price index from July, 2008 to February, 2013.

The Government Junior Lecturers Association in their representation has requested for a fitment of 69% on Basic pay by calculating a) a loss of 25% to the employees due to a difference between the accumulated inflation and the Dearness Allowance sanctioned and b) a change in the consumption   basket   of  employees   requiring   addition   of  another   43%   in Dearness Allowance to fully nullify the existing inflation.

It is evident  from the representation  of employees associations that in deciding the percentage of fitment two important factors have to kept in mind viz a) increase in the prices of consumer items and b) change in the consumption pattern and addition of new items of expenditure.  

While working out  the  Minimum  Pay,  the  Commission  has  taken  both  these  factors  into account.  The price of food and clothing are taken on the basis of market rates prevailing as on 1.7.2013.  

Additional expenditure of 10% of total expenditure on food and clothing and other miscellaneous items is now incorporated in the Minimum  Pay  to  also  provide  for  new  items  of  expenditure  and  changing pattern  of consumption.    

Minimum  Pay now fixed  is, in our view,  a realistic assessment of the money that will be required by an employee of initial cadre to maintain himself and his family in reasonable comfort and with due dignity.

Keeping in view the raise in the quantum  of minimum pay, the Commission recommends a fitment of 29% on Basic Pay. The Commission further recommends that  the  fitment  in  the  revised  scale may be made in the following manner:

(1)  D.A. admissible as on 01/07/2013   i.e.,  63.344% may be added to the Basic pay.
(2)  29% of the basic pay may be added to the total of Basic pay + D.A. arrived at (1) above;
(3) The pay of the employees should be fixed in the relevant revised scale at the stage next above the amount arrived at as at (2) above;
(4)  If an employee’s  pay when fixed as above falls short of the minimum in the revised pay scale, it shall be fixed at the minimum of the scale;
(5)  If the amount so fixed exceeds the maximum, the excess shall be  treated  as  personal  pay  and  it  should  be  absorbed  in future pay increases or in the stagnation increments sanctioned.

The  Commission recommends that the revised pay scales should come into force from 1.7.2013. As regards giving monetary benefit we deem it appropriate to leave the date from which it would come into effect to the Government  keeping in view its resource position and the demands on those resources.

Download the 10th PRC Report from here