8th Pay Commission: Will the 1.92 fitment factor increase or decrease your salary? Learn the complete calculation

Remember 2016? The 7th Pay Commission was implemented, and your salary magically increased overnight. The magic was the fitment factor of 2.57. This single number transformed the minimum basic salary of ₹7,000 into ₹18,000. There was a distinct glow on every employee's face.

Now, 10 years later, the clock is ticking again. The buzz around the 8th Pay Commission is swirling, but this time, there's a whisper of a new number: the fitment factor of 1.92. Hearing this number, many employees are wondering: "Will the same magic happen this time? Or will it be less than expected?"

So, let's examine the direct difference between the 7th and 8th Pay Commissions to see how a fitment factor of 1.92 would actually impact your basic salary of ₹30,000, ₹50,000, or ₹80,000. This is a story of expectations, statistics, and your pocketbook.

When the 7th Pay Commission was introduced in 2016, it introduced a fitment factor of 2.57. This meant that your 6th Pay Commission basic pay (pay band + grade pay) was multiplied by 2.57. This was a significant and historic increase.

There has been no official announcement regarding the 8th Pay Commission yet, but a fitment factor of 1.92 is the most discussed in reports and among experts. This would mean that your current 7th Pay Commission basic salary would be multiplied by 1.92. VIDEO - 5 years of e-challans will be waived in this state!

Let's say your current basic salary under the 7th Pay Commission is ₹30,000. Let's calculate your new basic salary using a fitment factor of 1.92. New basic salary = ₹30,000 x 1.92 = ₹57,600 Direct increase: ₹27,600

Now let's do the actual comparison. To get a basic salary of ₹30,000 under the 7th Pay Commission, your basic salary under the 6th Pay Commission would have been approximately ₹11,673. 7th CPC hike: ₹30,000 - ₹11,673 = ₹18,327 8th CPC hike: ₹57,600 - ₹30,000 = ₹27,600 Result: Despite the fitment factor of 1.92 being lower than 2.57, you are getting more benefits in terms of rupees under the 8th Pay Commission. VIDEO- From Shampoo to Coffee… GST to be reduced from September 22nd, 15 items to become cheaper!

Now let's see what happens if your current basic salary is ₹50,000. New Basic Salary = ₹50,000 x 1.92 = ₹96,000 Direct Increase: ₹46,000

To get a 7th Pay Commission basic salary of ₹50,000, your 6th Pay Commission basic salary would have been approximately ₹19,455. 7th CPC increase: ₹50,000 - ₹19,455 = ₹30,545 8th CPC increase: ₹96,000 - ₹50,000 = ₹46,000 Result: Here too, the fitment factor of 1.92 gives you a higher actual monetary benefit than the 7th Pay Commission. VIDEO - iPhone 17 discount available, see offers

Let's now look at the salary of a senior-level employee whose current basic salary is ₹80,000. New basic salary: ₹80,000 x 1.92 = ₹1,53,600 Direct increase: ₹73,600

To earn a basic salary of ₹80,000 under the 7th Pay Commission, your basic salary under the 6th Pay Commission would have been approximately ₹31,128. 7th CPC increase: ₹80,000 - ₹31,128 = ₹48,872 8th CPC increase: ₹1,53,600 - ₹80,000 = ₹73,600 Result: The 8th Pay Commission is winning here too.

The answer lies in the "base effect." Your basic salary has already increased significantly under the 7th Pay Commission. Therefore, when the 1.92 factor is applied to that increased basic salary, the total increase in rupees exceeds the 2.57 factor applied to the lower basic salary under the 6th Pay Commission.

The 1.92 fitment factor in the 8th Pay Commission may sound disappointing compared to the 2.57 in the 7th Pay Commission, but our analysis shows that this is only half the truth. In reality, this increase in rupee terms could bring you even greater good news than the 7th Pay Commission.