8th Pay Commission: How 2.15–2.86 fitment factor can raise your salary and pension

Central government employees and pensioners are awaiting clarity on revised pay and pension structures following the constitution of the 8th Pay Commission, chaired by former Supreme Court judge Ranjana Prakash Desai. Once the panel submits its recommendations and the Centre gives its approval, revised pay scales will be implemented for Group A, B, C and D employees, along with corresponding pension revisions.

The extent of the salary and pension hike will largely depend on the fitment factor recommended by the commission, according to an Economic Times report.

What is fitment factor?

The fitment factor is a multiplier applied to an employee’s existing basic pay to arrive at the revised basic salary. Under the 7th Pay Commission, a fitment factor of 2.57 raised the minimum basic pay from ₹7,440 (6th Pay Commission) to ₹18,000.

Payroll experts note that the fitment factor remains the single most important variable in determining the final salary increase under any pay commission.

Possible fitment factor range

The fitment factor under the 8th Pay Commission could fall in the range of 1.9 to 2.5, and is likely to be applied uniformly across levels, feel some experts.

Meanwhile, some believe the factor could range between 1.83 and 2.46, though he does not rule out a repeat of the 2.57 factor used by the 7th Pay Commission.

Salary impact if fitment factor is 2.15

If the commission recommends a fitment factor of 2.15, entry-level and senior employees alike could see notable increases:

Level 1 (Group D): Basic pay may rise from ₹18,000 to ₹38,700, an increase of about ₹20,700

Level 10 (Entry-level Group A): Pay could move from ₹56,100 to ₹1,20,615, up by ₹64,515

Level 18 (Senior-most Group A): Basic pay may jump from ₹2,50,000 to ₹5,37,500, a rise of ₹2,87,500

Salary impact if fitment factor is 2.86

A higher fitment factor of 2.86 would hugely raise payouts:

Level 1: ₹18,000 to ₹51,480, an increase of ₹33,480

Level 10: ₹56,100 to ₹1,60,446, up by ₹1,04,346

Level 18: ₹2,50,000 to ₹7,15,000, an increase of ₹4,65,000

Scenario if fitment factor remains at 2.57

If the 8th Pay Commission retains the 2.57 fitment factor, as in the 7th CPC:

Level 1: ₹18,000 to ₹46,260, a rise of ₹28,260

Level 10: ₹56,100 to ₹1,44,177, an increase of ₹88,077

Level 18: ₹2,50,000 to ₹6,42,500, a hike of ₹3,92,500

What happens next?

The final pay and pension revisions will depend on the fitment factor recommended by the 8th Pay Commission and the Union government’s approval. Until then, these figures remain indicative projections.