Following news of the 8th Pay Commission, lakhs of central government workers and pensioners are waiting with bated breath for clarity on pension and salary revision. When the Commission is led by Justice Ranjana Prakash Desai is finished with its recommendations and has submitted the report after which it is the responsibility of the Central Government will review and adopt the revised pay structure.
The primary element that determines the increase in salary in the 8th Central Pay Commission (8th CPC) is the factor of fitment. This multiplier is the sole factor that decides the amount that the current base pay will be increased for all pay levels. What kind of pay increase can employees anticipate when the fitment factor equals 2.15, 2.57, or 2.86? Here’s a detailed outline.
What Is a Fitment Factor?
Fitment factors are a number multiplier that is used to modify the pay base of employees after an updated Pay Commission is implemented.
An example from the 7th Pay Commission
- 6th CPC basic pay: Rs7,440
- Fitment factor: 2.57
- Revised basic pay: Rs18,000
The same principle will be applied to the 8th Pay Commission, with an updated fitment factor.
8th Pay Commission Salary Hike Key Details
| Key Aspect | Details |
| Pay Commission | 8th Pay Commission |
| Affected Employees | Central Government Employees (Group A, B, C & D) |
| Pensioners Covered | Yes (Pension & Family Pension) |
| Key Determinant | Fitment Factor |
| Fitment Factor (Expected Range) | 1.9 – 2.5 (2.57 or 2.86 also being discussed) |
| Previous Fitment Factor (7th CPC) | 2.57 |
| Salary Revision Basis | Existing Basic Pay X Fitment Factor |
| Impacted Pay Levels | Level 1 to Level 18 |
| Salary Increase Type | Increase in Basic Pay + Revised DA & Allowances |
| Pension Revision | Based on the revised basic pension |
| Decision Authority | Central Government (After Commission Report) |
| Current Status | Recommendations are awaited |
| Beneficiaries | Many thousands of employees and pensioners |
| Official | https://doe.gov.in/ |
What Could Be the Fitment Factor in the 8th Pay Commission?
Experts in the field of compensation and payroll recommend a range of different options:
- Ramachandran Krishnamoorthy, Director – Payroll Services Nexdigm Likely range: 1.9 to 2.5 that is that is applied consistently
- Pratik Vaidya MD, Karma Management Global Consulting Solutions
Possible range: 1.83 to 2.46, however, 2.57 is not ruled out.
The result is that employees could see an average to a significant increase in basic wages, based what the ultimate decision is.
Salary Hike If Fitment Factor Is 2.15
Should it is the case that 8th Pay Commission recommends a 2.15 fitment factor, the revised base pay might look like this:
Level-wise Impact (2.15 Fitment Factor)
- Level 1 (Group D – Entry Level)
- Current Basic Pay: Rs18,000
- Revised Basic Pay: Rs38,700
- Increase: Rs20,700
- Level 10 (Group A – Entry Level Officer)
- Current Basic Pay: Rs56,100
- Revised Basic Pay: Rs1,20,615
- Increase: Rs64,515
- Level 18 (Senior-most Group A Officer)
- Current Basic Pay: Rs2,50,000
- Revised Basic Pay: Rs5,37,500
- Increase: Rs2,87,500
This scenario represents an average, but healthy salary increases.
Salary Hike If Fitment Factor Is 2.57 (Same as 7th CPC)
If the government is able to continue with seventh CPC fitting factor 2.57 The increase will be much more significant.
Level-wise Impact (2.57 Fitment Factor)
- Level 1 (Group D)
- Current Basic Pay: Rs18,000
- Revised Basic Pay: Rs46,260
- Increase: Rs28,260
- Level 10 (Group A)
- Current Basic Pay: Rs56,100
- Revised Basic Pay: Rs1,44,177
- Increase: Rs88,077
- Level 18 (Senior-most Group A)
- Current Basic Pay: Rs2,50,000
- Revised Basic Pay: Rs6,42,500
- Increase: Rs3,92,500
This choice is thought to be realistic and also employee-friendly.
Salary Hike If Fitment Factor Is 2.86 (Highest Projection)
A 2.86 fitting factor would lead to a huge pay increase, particularly in higher pay levels.
Level-wise Impact (2.86 Fitment Factor)
- Level 1 (Group D)
- Current Basic Pay: Rs18,000
- Revised Basic Pay: Rs51,480
- Increase: Rs33,480
- Level 10 (Group A Officer)
- Current Basic Pay: Rs56,100
- Revised Basic Pay: Rs1,60,446
- Increase: Rs1,04,346
- Level 18 (Top Group A Officer)
- Current Basic Pay: Rs2,50,000
- Revised Basic Pay: Rs7,15,000
- Increase: Rs4,65,000
It would be a significant pay rise, but it could put the government under pressure to fund its finances.
What About Pensioners?
When is the 8th Pay Commission is implemented:
- The pensions are also being revised with the same fitment factors
- In addition, the Dearness Relief (DR) is to be calculated according to the new basic pension
- This will greatly increase the retirement income of a lot of pensioners.
Key Takeaways for Employees
- The final salary increase is contingent on the factor of fit
- A small variation in the underlying factor can lead to a huge change in the pay
- Officers of Group A benefit more in absolute terms
- The Group C & D employees gain substantial percentage increases
- The pensioners will also gain simultaneously
What Happens Next?
- 8th Pay Commission will finalise recommendations. 8th Pay Commission will finalise its recommendations.
- The Central Government will review and accept the recommendations.
- Implementation could follow arrears as well as revised DA calculations.
In the meantime, employees must be on the lookout for developments and stay clear of speculation.
The 8th Pay Commission is expected to provide a substantial financial boost to central government workers as well as pensioners in the three groups of A B, C, and. The fitting factor is the single crucial factor in determining the amount of the pension and salary increase. Any slight change in the multiplier could lead to a significant increase in the basic pay particularly in higher pay levels.
If the fitment factor is at or below 2.15, employees could expect to receive a moderate and even revision. An amount of 2.57, similar to the 7th Pay Commission, would result in a solid and generally acceptable increase and a greater factor such as 2.86 could result in a significant increase in salary however it could necessitate careful fiscal planning by the government.
FAQ’s
What is the 8th Pay Commission?
The 8th Pay Commission was established to review the pay, allowances as well as pensions for central government workers as well as pensioners.
What are the fitment factors expected in the 8th Pay Commission?
Experts estimate the fitment factor can range from 1.9 to 2.5 however 2.57 or 2.86 is being considered as well.
Are pensioners also able to receive this 8th Pay Commission?
Yes. Pension and family pensions will be adjusted with the same fitment that will result in a higher basic pension as well as Dearness Relief.
How long will it take for the 8th Pay Commission salary hike be in effect?
The hike will be in effect after that the Pay Commission submits its report and the Central Government approves it. The official date for implementation has not yet set.
