The 8th Pay Commission has officially begun its work after the central government released the Terms of Reference (ToR) last month. Since then, curiosity among central government employees and pensioners has increased significantly—especially about how much their salaries will rise and where the new fitment factor is likely to be fixed. The fitment factor plays the most crucial role in determining the revised basic pay.
What Exactly Is the Fitment Factor? 8th Pay Commission
In simple terms, the fitment factor is a multiplier used to convert the existing basic salary into the revised salary under a new pay commission. In the 7th Pay Commission, the fitment factor was fixed at 2.57, meaning the old basic pay was multiplied by 2.57 to determine the new basic.
How Is the Fitment Factor Calculated?
The government considers several factors while deciding the fitment factor:
- Increase in inflation
- Cost of living
- Household expenditure on essential items
- Dr. Wallace R. Aykroyd’s formula, which calculates minimum need-based wages, including food, clothing, rent, and basic family consumption
How Much Could the Fitment Factor Increase This Time?
According to financial firm Ambit Capital, the 8th Pay Commission’s fitment factor may fall in the range of 1.83 to 2.46. If this range is adopted, the minimum basic salary of ₹18,000 could increase as follows:
- At 1.83 factor: ~₹32,940
- At 2.46 factor: ~₹44,280
This means the minimum salary could rise by 14% to 54%, although experts believe the higher range of 54% is unlikely due to the heavy financial burden on the government.
How Will Salaries Increase Across Grade Pay Levels?
Based on expectations, the 8th Pay Commission may adopt a fitment factor between 1.92 and 2.57, which would significantly change basic pay, gross salary, HRA, TA, NPS, and related components.
Here are estimated salary figures (Basic + Allowances):
| Grade Pay | Fitment Factor | Basic (₹) | Gross (₹) | Net Salary (₹) |
|---|---|---|---|---|
| 1900 | 1.92 | 54,528 | 71,215 | 65,512 |
| 1900 | 2.57 | 72,988 | 94,105 | 86,556 |
| 2400 | 1.92 | 73,152 | — | 86,743 |
| 2400 | 2.57 | 97,917 | — | 1,14,975 |
| 4600 | 1.92 | 1,12,512 | — | 1,31,213 |
| 4600 | 2.57 | 1,50,602 | — | 1,74,636 |
| 7600 | 1.92 | 1,53,984 | — | 1,82,092 |
| 7600 | 2.57 | 2,06,114 | — | 2,41,519 |
| 8900 | 1.92 | 1,85,472 | — | 2,17,988 |
| 8900 | 2.57 | 2,48,262 | — | 2,89,569 |
When Will Employees Get the Benefit?
The 8th Pay Commission, headed by Justice (Retd.) Ranjana Desai, is expected to submit its report within the next 18 months. The report will include recommendations on salary revision, fitment factor, allowances, and pension changes.
