8th Pay Commission: Level 1 Salary May Rise Nearly 40% With 1.92 Fitment Factor
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The fitment factor is a multiplier used to calculate the revised basic pay for central government employees when a new pay commission is implemented.
8th Pay Commission: The 8th Pay Commission, officially announced in January 2024, is expected to be set up soon to revise salaries, pensions, and allowances for central government employees and retirees.
Historically, pay commissions have revised salaries about every 10 years. The 6th Pay Commission (2006) and the 7th Pay Commission (2016) brought significant increases in basic pay and allowances. The minimum basic salary of central government employees was increased from Rs 2,750 to 7,000 under the 6th CPC, and from 7,000 to Rs 18,000 under 7th CPC.
The pressing question among all employees and pensioners is how much their salary is expected to be increased in the 8th pay commission.
What Is the Fitment Factor?
The fitment factor is a multiplier used to calculate the revised basic pay for central government employees when a new pay commission is implemented. It ensures uniform salary hikes during the transition from the old to the new pay structure.
Formula:
New Basic Pay = Old Basic Pay × Fitment Factor
Under the 7th Pay Commission, the fitment factor was set at 2.57. For instance, if an employee's basic pay was Rs 10,000 under the 6th CPC, their revised pay became:
Rs 10,000 × 2.57 = Rs 25,700
According to several reports, the fitment factor could be 1.96 in the 8th pay commission.
How Much Level 1 Employee Would See The Salary Hike On Fitment Factor Of 1.92?
The 7th Pay Commission, introduced in 2016, replaced the old grade-pay system with a new structure called the Pay Matrix. This system categorizes salaries based on job positions, ranging from level 1 to level 18.
Level 1: Entry-level positions such as peon, clerk, MTS
If the fitment factor is 1.92, then Level 1 government employees may see a salary jump of around Rs 15,000 per month, which is about a 40% increase in take-home pay under the 8th Pay Commission.
First Published:
May 26, 2025, 08:24 IST
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