8th Pay Commission: Fitment factor lower than that of the 7th Pay Commission, yet salary could still double..

Discussions regarding the 8th Pay Commission are gaining momentum. Central government employees and pensioners are eagerly awaiting a salary hike. However, uncertainty has arisen regarding the fitment factor. The NC-JCM has proposed a fitment factor of 3.833; yet, experts believe the government might offer a factor lower than the one granted under the 7th Pay Commission. Nevertheless, experts opine that even if the fitment factor matches that of the 7th Pay Commission, employees' basic salaries could still double.

What happened under the 7th Pay Commission?
Under the 7th Pay Commission, the fitment factor was set at 2.57. This resulted in the minimum basic salary for central government employees rising from ₹7,000 to ₹18,000.

Impact of Dearness Allowance (DA): This hike occurred when the Dearness Allowance (DA) had already reached 125%—amounting to ₹8,750 based on the old basic salary.
Actual Benefit: This effectively meant that after adjusting for DA, the actual additional benefit employees received in their salary was only ₹2,250.

How will the 8th Pay Commission bring benefits?
According to Dr. Manjeet Singh Patel, National President of the All India NPS Employees Federation, the situation under the 8th Pay Commission could be entirely different and far more beneficial for employees. He stated on the social media platform 'X' that the 8th Pay Commission would certainly yield greater benefits compared to the previous commission, even if the fitment factor were lower. He also explained the detailed calculations behind this.

If the minimum fitment factor under the 8th Pay Commission is set at 2.1, the minimum basic salary would rise from ₹18,000 to approximately ₹38,000.
Currently, the DA stands at 58%, which amounts to roughly ₹10,400 based on the existing basic salary. In this scenario, the new additional benefit accruing to employees would amount to approximately ₹9,560.
In percentage terms, while employees received a benefit of around 32% under the 7th Pay Commission, this figure could rise to 53% under the 8th Pay Commission, despite a fitment factor of 2.1.

How will the basic salary change with a 2.1 fitment factor?
If the government implements a fitment factor of 2.1, the potential changes in the basic salary for employees at various levels could look like this:

Level 1: Entry-level basic salary could rise from ₹18,000 to ₹37,800.
Level 4: Entry-level basic salary could rise from ₹25,500 to ₹53,550.
Level 13: Basic salary could rise from ₹1,23,100 to ₹2,58,510.

Grade    Current Basic Pay    Estimated Basic Pay
Level 1    18,000    37,800
Level 2    19,900    41,790
Level 3    21,700    45,570
Level 4    25,500    53,550
Level 5    29,200    61,320
Level 6    35,400    74,340
Level 7    44,900    94,290
Level 8    47,600    99,960
Level 9    53,100    111,510
Level 10    56,100    117,810
Level 11    67,700    142,170
Level 12    78,800    165,480
Level 13    118,500    248,850
Level 13    131,100    275,310
Level 14    144,200    302,820
Level 15    182,200    382,620
Level 16    205,400    431,340
Level 17    225,000    472,500
Level 18    250,000    525,000

As you are aware, the fitment factor is the formula that directly determines an employee's basic pay. However, the final revision in salary will depend entirely on the final recommendations of the 8th Pay Commission and the final structure approved by the government.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.