These days, the 8th Pay Commission has become the most discussed topic among government employees. Last month, the government released the Terms of Reference (ToR) for the commission. Since then, curiosity has grown even more about how much the salary will increase and where the fitment factor might be fixed — because it is this factor that ultimately decides the new basic salary.
What is the Fitment Factor?
In simple words, the fitment factor is a multiplier used to convert old basic pay into new basic pay. During the 7th Pay Commission, the fitment factor was fixed at 2.57. That means the old basic salary was multiplied by 2.57 to calculate the new basic salary.
Now the biggest question is: What will be the fitment factor under the 8th Pay Commission?
How is the Fitment Factor decided?
Several factors are taken into consideration while deciding the fitment factor:
- The rate of inflation
- Cost of living
- Daily family expenses
-
Food, clothing, rent and basic consumption
The formula developed by Dr. Wallace R. Aykroyd (Aykroyd Formula) is also used, which includes minimum nutritional requirements and average household needs.
How much can the Fitment Factor increase?
According to a report by the financial firm Ambit Capital, the fitment factor may remain between 1.83 to 2.46. If that happens, the minimum basic salary of ₹18,000 may rise as follows:
- At 1.83 factor → approx ₹32,940
-
At 2.46 factor → approx ₹44,280
This means an increase of 14% to 54% in minimum salary is possible. However, a 54% hike is considered unlikely, as it would put a huge financial burden on the government.
How much can salary increase for different Grade Pay levels?
It is expected that the fitment factor under the 8th Pay Commission may fall between 1.92 and 2.57. On this basis, salaries at different pay levels could rise significantly.
The estimated salaries below include Basic Pay + HRA + TA + NPS + CGHS.
8th Pay Commission: Estimated Salary Structure
| Grade Pay | Fitment Factor | Basic Pay (₹) | Gross Salary (₹) | Net Salary (₹) |
|---|---|---|---|---|
| 1900 | 1.92 | 54,528 | 71,215 | 65,512 |
| 1900 | 2.57 | 72,988 | 94,105 | 86,556 |
| 2400 | 1.92 | 73,152 | — | 86,743 |
| 2400 | 2.57 | 97,917 | — | 1,14,975 |
| 4600 | 1.92 | 1,12,512 | — | 1,31,213 |
| 4600 | 2.57 | 1,50,602 | — | 1,74,636 |
| 7600 | 1.92 | 1,53,984 | — | 1,82,092 |
| 7600 | 2.57 | 2,06,114 | — | 2,41,519 |
| 8900 | 1.92 | 1,85,472 | — | 2,17,988 |
| 8900 | 2.57 | 2,48,262 | — | 2,89,569 |
(Note: Some gross salary values were not provided in the original source and hence remain blank.)
When will the benefits be implemented?
The 8th Pay Commission, under the chairmanship of Justice (Retd.) Ranjana Desai, is expected to submit its report in about 18 months.
The report will include recommendations related to:
- Salary structure
- Basic pay
- Fitment factor
- Pension
-
Allowances
Once the Cabinet approves the recommendations, changes in salaries, pensions, and allowances will be implemented.
This will benefit nearly 50 lakh government employees and 65 lakh pensioners across the country.