8th Pay Commission: Big Fat Pay Hike on Cards? Fitment Factor Hike Likely to Overhaul Salary of Central Govt Employees, Check

8th Pay Commission: A major update might be on the way for over 50 lakh central govt employees and pensioners. The government is likely to revise the fitment factor in 2025, bringing cheer to employees waiting for a much-needed salary hike.

This development, expected ahead of the 8th Pay Commission, could offer strong financial support against rising inflation. The revision will impact not only the basic pay but also other allowances like DA, HRA and TA.

Fitment Factor Hike May Boost Basic Salary Structure

The fitment factor plays a crucial role in salary calculation. It is a multiplier used to fix the basic pay as per the Pay Commission.

At present, the fitment factor is set at 2.57, based on the 7th Pay Commission. This means, if an employee’s basic salary is ₹18,000, it gets revised to ₹46,260.

But employee unions have been pushing for an increase to 3.68. If accepted, this would revise the same ₹18,000 basic pay to ₹66,240. That's a substantial difference and can be life-changing for many.

Will 8th Pay Commission Bring a Fitment Factor Hike?

While there is no official announcement yet, talks are gaining ground. Media reports and employee union discussions suggest that the government might announce the fitment factor hike next year, ahead of the 8th Pay Commission rollout.

If approved, the raise will affect base salary, allowances, and even pensions. The Dearness Allowance (DA), House Rent Allowance (HRA), and Travel Allowance (TA) are all calculated as a percentage of basic pay. Hence, a higher fitment factor will mean an overall rise in monthly earnings.

Rising Living Costs Push Demand for Salary Revision

Since the last revision in 2016, there has been no change in the pay structure. However, expenses have gone up sharply. Prices of essential items, fuel and services have increased, impacting the savings and lifestyle of central govt employees.

This growing burden has made unions demand a review. They believe the 8th Pay Commission and an updated fitment factor are both necessary to match today's economic realities.