Outlook Business Desk
As discussions around the 8th Pay Commission has gained momentum, a common question among central government employees and pensioners is how much their salary will increase. The outcome largely depends on one key aspect that is the fitment factor. Here's what it means.
The fitment factor is a multiplying number used to calculate the new basic salary from the existing one. In the 7th Pay Commission, it was fixed at 2.57, which raised the minimum basic pay from ₹7,000 to ₹18,000—but total salary hikes weren’t as high.
Though the 7th Pay Commission used a 2.57 fitment factor, the average total salary hike was just 14.3%. This was due to allowances being recalibrated. So even if the factor sounds high, the actual increase in monthly pay is usually much lower.
The 8th Pay Commission’s fitment factor could range from 1.83 to 2.46, the Financial Express reported, citing a report by Ambit Capital. For example, if someone’s basic salary is ₹50,000 now, it may rise to between ₹91,500 and ₹1,23,000—depending on the final recommendation.
Even with a higher basic salary, the final hike gets diluted. This is because the Dearness Allowance (DA), House Rent Allowance (HRA), and other allowances are reset after being merged into the new basic. So, a fitment factor of 2.46 may still result in only a 30–34% hike.
A report by Kotak Institutional Equities also reportedly stated that if the government opts for a low fitment factor—say 1.8—then the total salary increase could be just 13%. That would fall far short of the expectations among employees hoping for a major jump.
The 8th Pay Commission was originally meant to be implemented from January 1, 2026. But with no formal Terms of Reference (ToR) yet and members still not appointed, implementation could be delayed by a year, pushing it to 2027.
Employees should note the fitment factor only affects the basic pay. Once DA and other allowances are adjusted, the final salary hike is much smaller than the multiplication factor. So even a 2.46 fitment may not double your total monthly earnings.