8th Pay Commission: How much will the salary hike be under the 8th Pay Commission? Understand the complete math behind the 'Fitment Factor' here.

Fitment Factor: Discussions regarding the 8th Pay Commission are gaining momentum. The government has also given its approval for its implementation. In this context, let us explain what the 'Fitment Factor' is and how it works.

8th Pay Commission: For the past several days, there has been intense speculation and discussion surrounding the 8th Pay Commission. Recently, the formation of the 8th Pay Commission received official approval. Consequently, employees are now eagerly awaiting an increase in their salaries. Amidst this, the 'Fitment Factor' has also become a subject of rapid discussion. So, let us explain what the Fitment Factor is and what impact it will have on your salary.

What is the 'Fitment Factor'?

Following the 8th Pay Commission, all eyes are on the 'Fitment Factor,' as it serves as the basis for revising the salaries and pensions of central government employees and pensioners. The Fitment Factor is a specific coefficient (multiplier) used to convert an employee's existing basic salary into their new salary.

The Fitment Factor Formula:

There is a basic formula for the Fitment Factor, which is used to determine your revised salary.

New Basic Salary = Existing Basic Salary × Fitment Factor

How does the formula work?

If the Fitment Factor increases, the employees' salaries, pensions, increments, and arrears also increase proportionately.

For instance, under the 7th Pay Commission, the Fitment Factor was set at 2.57. As a result, the minimum basic salary rose from ₹7,000 to ₹18,000. According to the formula:

7,000 × 2.57 = 18,000

Although this appears to be a substantial hike, it is worth noting that a Pay Commission is typically implemented only once every 10 years.

Will the 8th Pay Commission include a Fitment Factor?

As of now, the specific Fitment Factor for the 8th Pay Commission has not yet been determined. However, several reports estimate that this figure could range between 2.28 and 3.83.

It is worth noting that the 'fitment factor' was a subject of considerable discussion during the 6th and 7th Pay Commissions as well. Prior to this, various methods were employed to hike salaries, such as incorporating Dearness Allowance and making adjustments to the pay structure. During the first five Pay Commissions, there was no single, fixed formula akin to the 'fitment factor.' At that time, salary increments were implemented by overhauling the entire salary structure.