8th Pay Commission: What Is The Fitment Factor And Why It Matters Under The 8th Pay Commission

Following the constitution of the 8th Pay Commission, central government employees and pensioners are closely tracking developments around the fitment factor, which will determine the scale of revisions in salaries and pensions. The commission is headed by chairperson Ranjana Prakash Desai.

Once the panel submits its report, the Centre will examine the recommendations before taking a final decision. The entire process is expected to conclude in the second half of 2027, with revised pay and pension announcements likely around the festive season.

The pay revision will cover employees across Levels 1 to 18, spanning Group D, C, B and A categories, along with pensioners.

Why The Fitment Factor Matters

Experts say the fitment factor will be the most critical element in the 8th Pay Commission, as it directly determines the extent of the salary hike.

The fitment factor is a single multiplier applied to an employee’s existing basic pay to arrive at the revised basic pay. In effect, it decides how large the pay jump will be. A higher fitment factor results in a steeper increase, while a lower one leads to a more modest revision.

The same fitment factor is applied uniformly across all pay levels, from Level 1 to Level 18, ensuring a broadly similar percentage increase across ranks. However, the absolute increase in rupee terms is higher for senior officers due to their higher base pay.

Since allowances such as Dearness Allowance (DA), House Rent Allowance (HRA) and Transport Allowance (TA) are calculated on the basic pay, any increase through the fitment factor has a cascading impact on total take-home salary. The same principle applies to pensions, which are also linked to revised basic pay.

How The Fitment Factor Works

Under the Pay Commission framework, the revised basic salary is calculated by multiplying the existing basic pay by the fitment factor. During the 7th Pay Commission, the fitment factor was fixed at 2.57. As a result, a basic pay of Rs 7,440 under the 6th Pay Commission increased to Rs 18,000 under the 7th CPC.

Likely Range Under The 8th Pay Commission

According to experts, the fitment factor under the 8th Pay Commission could fall between 1.83 and 2.46, though the final figure will depend on the commission’s recommendations and the government’s approval.

Illustrative Impact Across Pay Levels

Using a widely discussed fitment factor of around 2.15, indicative revisions could be as follows:

Level 1 (entry level): Rs 18,000 to Rs 38,700, an increase of about Rs 20,700

Level 10 (mid/senior level): Rs 56,100 to Rs 1,20,615, an increase of about Rs 64,515

Level 18 (top officers): Rs 2,50,000 to Rs 5,37,500, an increase of about Rs 2,87,500

The final figures will, however, depend on the recommendations submitted by the 8th Pay Commission and their acceptance by the Centre.

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