8th Pay Commission: It is a misconception that if the fitment factor in the 8th Pay Commission is 2.86, then the salary and pension will also increase by the same amount. Actually, the fitment factor applies only to the basic salary, not to the gross salary.
8th Pay Commission: Ever since the announcement of the 8th Pay Commission, the discussion has intensified regarding the ‘fitment factor’ on the basis of revision of salary and pension of central government employees and pensioners.
According to reports, the fitment factor in the 8th Pay Commission can be between 1.92 to 2.86. Actually, the fitment factor is a multiplier, which the government uses to revise the salary and pension of employees. However, there is also a misunderstanding about the fitment factor.
What is the real meaning of fitment factor?
It is a misconception that if the fitment factor in the 8th Pay Commission is 2.86, then the salary and pension will also increase by the same amount. Actually, the fitment factor applies only to the basic salary, not to the gross salary.
Why is the increase in salary and pension not in proportion to the fitment factor?
According to the Financial Express report, the fitment factor does not have much effect on the gross salary, because the total salary also includes many other components. While revising the salary and pension, the pay panel takes into account many other aspects, such as merging DA with basic pay and adding or removing many allowances. This ensures that the calculation of the fitment factor will be applicable only to the basic pay.
In simple language, understand it like this, in the 7th Pay Commission, the fitment factor was 2.57, due to which the basic pay increased from Rs 7,000 to Rs 18,000. But, talking about the actual increase, the salary and pension of level 1-3 employees increased by an average of only 15 percent. However, employees of level 4-10 got a higher increase than this.
At the same time, the fitment factor in the 6th Pay Commission was 1.86, but there was a 54 percent increase in salary and pension. It is clear from this that a higher fitment factor does not mean that the total salary will increase by the same amount.
Actual salary increase in previous pay commissions (percentage)
- Second Pay Commission: 14.2 percent
- Third Pay Commission: 20.6 percent
- Fourth Pay Commission: 27.6 percent
- Fifth Pay Commission: 31.0 percent
- Sixth Pay Commission: 54.0 percent
- Seventh Pay Commission: 14.3 percent
When will the 8th Pay Commission be constituted?
Now that the date of formation of the 8th Pay Commission is approaching, government employees and pensioners are expecting a good salary hike this time, so that they can live a “respectable and dignified life”. Let us tell you, the 8th Pay Commission is expected to be formally constituted in April 2025.
Earlier, the employee side of the National Council of Joint Consultative Mechanism (NC-JCM) had suggested that the terms and conditions of the new pay commission should also include a review of pay, allowances, other benefits, retirement benefits like pension and gratuity. Now it remains to be seen how well the 8th Pay Commission meets the expectations of government employees.
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