8th Pay Commission: What Fitment Factor Could Mean For Salaries And Pensions

The pay revision will apply to employees across levels 1 to 18, covering Group D, C, B and A staff, as well as pensioners.

Allowances such as DA, HRA and TA are linked to basic pay. When the basic pay rises through the fitment factor, total take-home pay increases significantly. The same applies to pensions, which are also based on revised basic pay.

Source : istockphoto.com

Show Quick Read

Key points generated by AI, verified by newsroom

Following the formation of the 8th Pay Commission, central government employees and pensioners are keenly awaiting clarity on the fitment factor that will determine their revised payouts. The panel is headed by chairperson Ranjana Prakash Desai.

Once the commission submits its report, the central government will examine the recommendations before approving them. The entire exercise is expected to conclude in the second half of 2027, with revised pay and pension announcements likely during the festive season.

The pay revision will apply to employees across levels 1 to 18, covering Group D, C, B and A staff, as well as pensioners.

Fitment Factor Key To Salary Revision

Experts say the fitment factor will be the most critical component in determining the scale of salary increases under the 8th Pay Commission.

Why Is Fitment Factor Key To Salary Revisions?

The fitment factor is key to salary revision because it is the single multiplier that converts the existing basic pay into the new basic pay under a Pay Commission. In simple terms, it decides how big the pay jump will be for everyone.

The fitment factor is applied directly to the current basic salary. A higher factor means a bigger revision; a lower factor means a modest increase. Since all allowances are calculated on basic pay, this multiplier sets the foundation for the entire salary structure.

The same fitment factor is applied to employees from Level 1 to Level 18. This keeps the percentage increase broadly equal across ranks, even though the absolute rupee gain is higher for senior officers because their base pay is larger.

Allowances such as DA, HRA and TA are linked to basic pay. When the basic pay rises through the fitment factor, total take-home pay increases significantly. The same applies to pensions, which are also based on revised basic pay.

How The Fitment Factor Works

Under the pay commission system, the basic pay is multiplied by the fitment factor to calculate the revised basic salary. During the 7th Pay Commission, the fitment factor was set at 2.57. As a result, a basic pay of Rs 7,440 under the 6th Pay Commission rose to Rs 18,000 under the 7th CPC.

Possible Fitment Factor Under 8th CPC

According to experts, fitment factor under the 8th Pay Commission could range between 1.83 and 2.46.

Illustrative Impact On Different Pay Levels

Using a commonly discussed fitment factor of around 2.15, the estimated increases could be:

• Level 1 (entry level): Rs 18,000 → Rs 38,700; increase of about Rs 20,700
• Level 10 (mid/senior level): Rs 56,100 → Rs 1,20,615; increase of about Rs 64,515
• Level 18 (top officers): Rs 2,50,000 → Rs 5,37,500; increase of about Rs 2,87,500

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

8th Pay Commission Could Bring Big Salary Jump As DA Nears 70%: What Govt Employees Should Know

Your Money, Your Life | Ahead Of 8th Pay Commission: Big Boost For Central Govt Employees With New Salary Account Scheme