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HomePersonal Finance8th Pay Commission Salary: Big Shock to central employees! Fitment factor will...

8th Pay Commission Salary: Big Shock to central employees! Fitment factor will increase by this much instead of 2.57, check latest update

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8th Pay Commission Fitment Factor Latest News: Lakhs of central government employees and pensioners are eagerly waiting for the 8th Pay Commission. Everyone hopes that this will lead to a huge increase in their salary. But according to recent reports, the government may keep the fitment factor low this time, which will lead to a relatively less increase in salary.

8th Pay Commission Fitment Factor Latest News: Lakhs of central government employees and pensioners are eagerly waiting for the 8th Pay Commission. It is expected that with the implementation of the new pay commission, there will be a bumper increase in their salary. But a recent report has dashed these hopes. According to the report, the 2.57 fitment factor that the employees are dreaming of may not happen. The government may keep the fitment factor low this time, which will lead to less increase in salary than expected. Let us understand this whole matter in simple language and in detail.

What is the fitment factor and why is it so important?

The fitment factor is a multiplier by which the basic salary of an employee is multiplied to determine the new basic salary. This is the most important part of salary revision because it decides how much your salary will increase. In the 7th Pay Commission, the fitment factor was 2.57. This meant that the new salary was decided by multiplying the basic salary of the employees by 2.57. For example, if someone’s basic salary was Rs 10,000, then after the 7th Pay Commission his basic salary became Rs 25,700.

Setback to the dream of 2.57, what can be the new fitment factor?

According to the news going on in the market and media, two types of things are coming out about the fitment factor in the 8th Pay Commission:

Disappointing report

According to a report by Kotak Institutional Equities, the fitment factor in the 8th Pay Commission can be between 1.8 to 1.92. If this happens, it will be a big setback for the employees. This will increase the salary by only about 13%, which is less than the 14.3% increase of the 7th Pay Commission.

Optimistic report

At the same time, some other reports are also saying that the fitment factor can also be from 2.28 to 2.86. If the government accepts this proposal, then there can be a tremendous increase of 30% to 34% in the salary of the employees. But, its chances are very low.

The government has not yet made any official statement on this, but the Finance Ministry has started the process of seeking suggestions from various ministries and stakeholders.

How much will your salary be affected by a lower fitment factor?

Let us understand through a calculation table how much your salary can increase on different fitment factors. Here we are considering the minimum basic salary of Rs 18,000 (according to the 7th Pay Commission) as the basis.

Current Basic Salary (7th Pay Commission)Fitment Factor (Expected)New Basic Salary (Estimated)Total increase (estimated)
₹ 18,0001.86 (6th Pay Commission)₹ 33,480₹ 15,480
₹ 18,0001.92 (as per report)₹ 34,560₹ 16,560
₹ 18,0002.57 (7th Pay Commission)₹ 46,260₹ 28,260
₹ 18,0002.86 (Demands of Employees Unions)₹ 51,480₹ 33,480

Please note:

This calculation is based only on the basic salary. The total salary also includes many other allowances like dearness allowance (DA), house rent allowance (HRA), and travel allowance (TA), which are decided on the basis of basic salary. When the new pay commission is implemented, DA is merged in the basic salary and its calculation starts again from zero.

Possible Fitment Factor and Salary Hike of 8th Pay Commission
Considering the current Dearness Allowance (DA), DA may increase from 60% to 62% by 01.01.2026.

The possible scenarios given below show what the salary hike could be in the 8th Pay Commission.

PossibilitiesEstimated DA as on 01.01.2026 (%)Potential Salary Increase (%)
Very Optimistic62%24%
Very Pessimistic60%12%
Normal Expectation61%18%

There is a possibility that the government may recommend a salary hike between 18% and 24%. If there is a 24% hike, the fitment factor will be high and the salary hike will be great. If there is only a 12% hike, the expectations of the employees may be dashed.

Why can the government keep the fitment factor low?

The financial burden on the government can be a major reason. The implementation of the 8th Pay Commission is estimated to put an additional burden of about 0.6-0.8% GDP on the government treasury. Apart from this, the government is also focusing on other welfare schemes at this time. However, the employee unions are constantly demanding to increase the fitment factor to at least 2.86, so that there can be relief from rising inflation.

When can the 8th Pay Commission be implemented?

Usually a new pay commission is constituted every 10 years. The 7th Pay Commission came into effect on January 1, 2016, so the recommendations of the 8th Pay Commission are expected to be implemented from January 1, 2026. However, the process of setting up the commission and submitting the report may be delayed, which could stretch it to late 2026 or even early 2027. The government approved the formation of the commission in January 2025, but the chairman and members are yet to be appointed.

Conclusion

Overall, the picture is not completely clear about the 8th Pay Commission. While on one hand the employees are expecting a fitment factor of 2.57 or more, some reports are pointing towards a lower fitment factor, which is definitely a matter of concern. The situation will become clear only after the formation of the commission and its Terms of Reference (ToR) is finalized by the government in the coming few months. Till then, lakhs of central employees and pensioners will have to wait and hope that the government will take a decision keeping their interests in mind.

Frequently Asked Questions (FAQs)

1. When will the 8th Pay Commission be implemented?

Its recommendations are expected to be implemented from January 1, 2026, but it may also be delayed by a few months.

2. What was the fitment factor in the 7th Pay Commission?

The fitment factor in the 7th Pay Commission was 2.57.

3. What can be the minimum basic salary in the 8th Pay Commission?

According to reports, it can be between Rs 30,000 to Rs 32,000, although in some estimates it can go up to Rs 51,000.

4. Will the 8th Pay Commission also increase the pension?

Yes, the recommendations of the Pay Commission also apply to pensioners, which will also increase their pension.

5. What is the fitment factor?

This is a multiplier by which the new basic salary is decided by multiplying the existing basic salary.

Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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