8th Pay Commission: The central government announced the 8th Central Pay Commission (CPC) in January this year, well before the current pay structure expires in December 2025. The upcoming commission is eagerly awaited by millions of central government employees and pensioners, as it is expected to revise pay and pension structures significantly.
According to reports, the government is already in the process of filling 42 key positions, including consultants and the chairperson of the 8th CPC. The new commission is expected to begin its work soon, once the Terms of Reference (ToR) are finalised. One of the key areas of focus will be the revision of the fitment factor, which plays a crucial role in determining salary and pension increases.
The 8th Pay Commission will revise salaries, pensions, and allowances, directly benefiting over 50 lakh central government employees and over 65 lakh pensioners.
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
What If Fitment Factor Is 2.86 Under 8th Pay Commission?
If the 8th Pay Commission recommends a fitment factor of 2.86, it could lead to a significant salary hike for central government employees. For example:
If current basic pay = Rs 20,000
Then new basic pay = Rs 20,000 × 2.86 = Rs 57,200
This reflects a remarkable jump in take-home salary, especially compared to the hike seen during the previous pay commission.
| CURRENT BASIC PAY (7TH CPC) | REVISED PAY (FITMENT FACTOR 2.57) | ESTIMATED PAY (FITMENT FACTOR 2.86) |
|---|---|---|
| Rs 10,000 | Rs 25,700 | Rs 28,600 |
| Rs 20,000 | Rs 51,400 | Rs 57,200 |
| Rs 30,000 | Rs 77,100 | Rs 85,800 |
| Rs 40,000 | Rs 1,02,800 | Rs 1,14,400 |