New Delhi: The Central Government is currently preparing recommendations for the 8th Pay Commission for central government employees and pensioners. The government will implement these recommendations as soon as they are finalised. When a new pay commission is implemented, the ‘fitment factor’ plays a crucial role; the salary hike is determined by the multiplier of this fitment factor. Only the final report will reveal exactly what fitment factor the government decides to adopt.
While employee unions are demanding a fitment factor ranging from 2.57 to 2.86, even if the government sets it at 2.1, employees would still see a significant salary increase. You can find the relevant details in the article below, which will clarify any doubts you may have.
How much will the salary increase due to the fitment factor?
The fitment factor plays a pivotal role in raising the basic salary of central government employees. Currently, the minimum basic pay for employees is set at ₹18,000. If the 8th Pay Commission recommends a fitment factor of 2.1, the salary hike will be calculated based on this figure. The calculation is straightforward:
Your salary would become ₹18,000 x 2.1 = ₹37,800. Simply put, if the current basic salary is ₹18,000, the estimated basic salary under the 8th Pay Commission would reach ₹37,800. Looking solely at the basic pay, this represents a 110% increase; in other words, the new basic pay would be 2.1 times the current basic pay.
What percentage increase is possible?
Currently, the minimum basic salary for a central government employee is ₹18,000. They also receive Dearness Allowance (DA) on top of this. Therefore, the new salary should be compared not just against the ₹18,000 figure, but against the current basic pay plus the DA. For this reason, equating a 2.1 fitment factor directly to a 110% salary hike would be incorrect.
Significant Gains from a Seemingly Small Figure
Manjit Singh Patel, President of the All-India NPS Employees Federation, also holds the view that a fitment factor of 2.1 will yield substantial benefits for employees. He has also made a concerted effort to explain this point through social media posts, emphasising that while the figure might appear small, it is set to deliver significant advantages.
He further explained that under the 7th Pay Commission, the basic pay was raised from ₹7,000 to ₹18,000 by applying a fitment factor of 2.57. At that time, employees were receiving a 1.25% Dearness Allowance (DA); consequently, the actual increase in their salary amounted to approximately ₹15,000.
