8th Pay Commission: central Govt employees salary after 2.86 fitment factor likely to be…, what impacts on calculations?
Fitment factor determines the basic pay calculation and later on effect on other calculations. Employee organisations are demanding a high fitment factor of 2.86 but hike in salaries may be less than predictions. Fitment Factor: A Closer Look
The fitment factor is a multiplier applied to the basic pay to calculate the revised salary. For example if the factor is 2.86, the minimum basic pay will increase. According to a Financial Times report, former Finance Secretary Subhash Garg noted that such a large hike may not be possible. Many experts predict the fitment factor for the 8th Pay Commission can be closer to 1.92.
Even if it goes to 2.86, the actual benefit might be very less due to inflation adjustments. We can compare it with previous pay commissions. 6th And 7th Pay Commissions
6th Pay Commission (2006): Fitment factor: 1.86
Actual salary increase: 54%
7th Pay Commission (2016): Fitment factor: 2.57
Actual salary increase: 14.2%
In the 7th Pay Commission, most of the hike went toward adjusting Dearness Allowance (DA) and a smaller portion of salary really grew.
Majority of part of the fitment factor is designed to address inflation. For example, At the time of the 7th Pay Commission, the total fitment included 2.25% current salary + 125% DA but only 0.32% was an actual increase in real salary.
Therefore only on the basis of higher numbers assuming that salary will increase is misleading. Most of the adjustments are done for inflation rather than giving 'new money'.
The Modi government announced the formation of the 8th Pay Commission earlier this year. Terms of Reference (ToR) is also expected soon, which will outline the panel's objectives. 40 personnel from various government departments will join the commission.
The 8th Pay Commission's recommendations are expected to take effect in January 2026, if they consider the 7th Pay Commission's term will end on December 31, 2025.
The 7th Pay Commission, implemented in 2016 and brought an additional burden of Rs 1.02 lakh crore on the government.
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He writes on foreign affairs, geopolitics along with domestic policy and infrastructure projects. tags : the philippines view comments Location : New Delhi, India, India First Published: August 05, 2025, 08:00 IST News opinion Opinion | Decoding Modi's Indo-Pacific Strategy: How Ties With Philippines Have Grown Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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It was USD 41 billion in 2024-25 and USD 27.7 billion in 2024-25, bilateral trade between India and the US reached USD 186 billion. India exported USD 86.5 billion in goods while importing USD 45.3 services, India exported an estimated USD 28.7 billion and imported USD 25.5 billion, adding a USD 3.2 billion surplus. 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