8th Pay Commission: What is the fitment factor and how much will your salary increase? Understand in easy language
Central government More than 1.2 crore employees and pensioners working in the 8th Pay Commission are eagerly waiting for the implementation of the 8th Pay Commission. Earlier, it was expected that the next Pay Commission would start its term from 1 January 2026, but now it does not seem because there is not much progress regarding the appointment of members. However, a good news in the meantime is that according to a recent report by brokerage firm Embit Capital, the central government employees and pensioners may increase their salary by up to 34% under the 8th Pay Commission. The report also said that after the implementation of the recommendations of the Commission, they will not only increase the income of government employees, but will also give a tremendous boost to consumer expenses in the country.
What is fitment factor?
Under the pay commissions, amendment in salary, pension and allowances is done on the basis of fitment factor. This major multiplier determines the salary and pension of government employees. It is determined keeping in mind the various factors like inflation, the needs of employees and the power of the government. Currently, the salary structure of the central employees is based on the fitment factor of the 7th Pay Commission, which came into force in 2016. The report says that the fitment factor in the 8th Pay Commission may be between 1.83 and 2.46. How much will the employees and pensioners get, this fitment factor will play an important role
Fitment factor effect on salary?
The current Pay Commission implemented a fitment factor of 2.57 percent. However, this does not mean that the salary has increased 2.57 times, as it was only added to the original salary, making it a minimum of ₹ 18,000. The actual growth in salary component was 14.3 percent. Significantly, at the beginning of the new Commission, dearness allowance has been reduced to zero, as the index is again based. The same is expected to happen under the Eighth Pay Commission. Salaries of government employees include basic salary, dearness allowance (DA), house rent allowance (HRA) and transport allowance. The basic salary of employees is 51.5 percent of their total income.
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