8th Pay Commission: Why is the fitment factor being discussed more than the salary hike? How is it determined? Understand in simple terms..
Among central government employees and pensioners, the most discussed question these days is when the 8th Pay Commission will be implemented and when the increased salaries (Salary Hike 2026) will be received. But the most important point in this entire debate is the fitment factor (8th Pay Commission Fitment Factor) because it determines how much the current salary will increase. This is why every employee wants to know what the fitment factor might be this time and on what basis the government determines it.
Amidst rumors and speculations, Jagran Business spoke to Dr. Manjeet Singh Patel, the national president of the All India NPS Employees Federation. He explained the entire fitment factor calculation in simple terms so that employees can get a clear picture.
What is a fitment factor?
Dr. Manjeet Patel explains that the fitment factor is a multiplier used to determine the new basic salary by multiplying it by the existing basic salary. The higher the fitment factor, the higher the salary and pension.
How does the fitment factor work? Understand with a calculation:
If an employee's current basic salary is ₹18,000 and the fitment factor is set at 2.64, then:
₹18,000 × 2.64 = ₹47,250
This means the basic salary will directly increase to ₹47,250.
If the current basic salary is ₹50,000, then:
₹50,000 × 2.64 = ₹1,32,000
This means the new basic salary could reach ₹1,32,000.
What could the fitment factor be this time?
According to Dr. Manjeet Patel, one of the three fitment factors could be implemented this time. These include 2.13, 2.64, and 2.80.
A 2.13 fitment factor means a 'no profit, no loss' situation.
2.64 is considered the minimum acceptable fitment factor.
2.8 or higher is possible if the family unit is increased from 3 to 5.
On what factors does the fitment factor depend?
Inflation and cost of living
CPI and CPI-IW data
The government's financial position and budget
Limit on total salary expenditure
Comparison with private sector salaries
Industry salary surveys and market benchmarks
Family unit and expenditure calculation... How is the fitment factor decided?
The Pay Commission uses the lowest-level employee as the base.
Family Unit: Employee + Spouse + 2 children (existing rule), where the employee is considered 1 unit, the spouse 1 unit, and the two children half a unit each, totaling three units.
How many calories should be consumed per day?
Food, clothing, education, health, transport, and minimum social needs. The daily expenditure for all these is calculated, then multiplied by 30 to determine the minimum monthly salary. Salaries for higher levels are then determined based on this, and the Dearness Allowance (DA) is started from zero.
When will the increased salary be implemented?
The 8th Pay Commission is considered due from January 1, 2026, meaning that, according to the rules, the increased salary (8th pay commission salary hike 2026) should be received from this date. However, Manjeet Patel says that it may take approximately 18 to 24 months for the commission to submit its report, for cabinet approval, and for implementation. Therefore, there is a strong possibility that employees will receive the increased salary from July 1, 2027, or January 1, 2028. 'The process can be completed in 6-7 months if the government wants.'
According to Manjeet Patel, the process could be completed in 6-7 months if the government so desires, but the indications so far suggest that it is being linked to the election calendar. Considering the Uttar Pradesh assembly elections in 2027, an announcement regarding the salary increase is likely around July 2027. But the question now is, what exactly is the fitment factor, and how is it determined? Understanding this is crucial because the fitment factor is currently the subject of much discussion.
What are the losses for employees due to the delay?
If the 50% DA had been merged with the basic pay on January 1, 2024, employees would have been receiving higher salaries for over two years. Due to the delay, a Level-8 employee could lose up to Rs 30-35 lakh, as they will not receive arrears for HRA and transport allowance. The 8th Pay Commission could be a major relief for employees, but everything depends on the fitment factor and the date of implementation. All eyes are now on the government's next move and the decisions that will be made around 2027.
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.
