8th Pay Commission Update: If a 4.0 fitment factor is adopted, a basic salary of ₹18,000 would rise to ₹72,000.

If a fitment factor of 4.0 is implemented under the 8th Pay Commission, the current basic salary of ₹18,000 could increase to ₹72,000. You can view the detailed calculations for fitment factors of 3.83 and 4.0 here.

Among central government employees and pensioners, the fitment factor is the most discussed topic regarding the 8th Pay Commission. If the fitment factor is set at 4.0, the current minimum basic salary could rise from ₹18,000 to ₹72,000. However, this cannot yet be considered a final decision, as neither the government nor the 8th Pay Commission has officially determined a figure for the fitment factor; these are merely calculations based on a 4.0 fitment factor.

What is a fitment factor?

The fitment factor is the multiplier used to convert the existing basic pay into the new salary structure. In other words, the revised basic pay is estimated by multiplying the current basic salary by the fitment factor.

For instance, if a central government employee's current basic salary is ₹18,000 and the fitment factor is set at 4.0, the basic salary would increase to ₹72,000. This is why the discussion surrounding the 4.0 fitment factor is so significant among employees.

What would the basic salary be with a 3.83 fitment factor?

It is not just 4.0; some employee unions have also demanded a fitment factor of 3.83. If a fitment factor of 3.83 is implemented, the current basic salary of ₹18,000 would rise to approximately ₹68,940.

What is the difference between 3.83 and 4.0?

3.83 Fitment Factor – ₹68,940 Basic Pay
4.0 Fitment Factor – ₹72,000 Basic Pay

What was the fitment factor under the 7th Pay Commission?

The fitment factor is not a new concept. It was set at 2.57 under the 7th Pay Commission. Prior to that, it was 1.86 under the 6th Pay Commission. Now, various demands and estimates regarding the fitment factor are emerging ahead of the 8th Pay Commission. Some employee organizations have demanded a fitment factor of 4.0, while other proposals suggest a figure of 3.83.

Will only the basic pay increase, or the entire salary?

The fitment factor will not directly raise your total in-hand salary to ₹72,000; ₹72,000 represents only the revised basic pay. Subsequently, DA (Dearness Allowance), HRA (House Rent Allowance), and other allowances will be determined in accordance with the government's new pay structure. Therefore, an employee's total salary and the actual in-hand amount may differ. Reports also indicate that upon the implementation of the new pay system, existing DA and DR (Dearness Relief) will be reset, and allowances will be determined based on the new structure.