8th Pay Commission can be constituted in April 2025. What will be the fitment factor in this pay commission? Know how much salary and pension will increase…
8th Pay Commission: Since the formation of the Eighth Pay Commission by the Central Government, there has been a constant discussion about the fitment factor. Let us tell you that the salary and pension of central government employees and pensioners are increased on the basis of the fitment factor.
According to reports, the fitment factor under the Eighth Pay Commission can be between 1.92 to 2.86. The fitment factor is a multiplier used by the central government to increase the salary and pension of the employees. But there are all misunderstandings related to the implementation of the fitment factor. It is believed that if the fitment factor is fixed at 2.86 in the 8th Pay Commission, then the salary and pension will increase manifold. But the truth is that the fitment factor is applied on the basic salary and not on the gross salary of any employee.
Why do salaries and pensions not increase in proportion to the increase in basic pay?
One reason why the fitment factor does not show the same multiplier effect in gross salary as in basic pay is that the total salary includes many other components. While revising the salary and pension, the pay panel also considers many other aspects, such as merging DA with basic pay and adding or removing several allowances. This ensures that the calculation of the fitment factor will be applicable only to the basic salary.
For example, under the 7th Pay Commission, the fitment factor was fixed at 2.57 for increasing salary and pension. Due to which the basic salary of government employees increased from Rs 7000 to Rs 18,000. But when it comes to the actual salary increase, the salary and pension of employees under Level 1-3 saw an overall increase of around 15 percent. However, the increase in the salary of employees under Level 4-10 was more.
On the other hand, the hike under the 6th Pay Commission was much higher than the 54% which recommended 1.86 as the fitment factor. Hence, it is clear from the previous examples that a high fitment factor does not guarantee a proportionate increase in the gross salary of a government employee or pensioner.
Actual salary hike in previous pay commissions (%)
-2nd Pay Commission: 14.2%
-3rd Pay Commission: 20.6%
-4th Pay Commission: 27.6%
-5th Pay Commission: 31.0%
-6th Pay Commission: 54.0%
-7th Pay Commission: 14.3%
What are the expectations from the 8th Pay Commission?
Now that the countdown to the formation of the 8th Pay Commission has begun, government employees and pensioners are hoping for a good salary hike this time, which will give them enough pay to lead a “respectful and dignified life”.
However, given the trend of previous pay commissions, employees should expect more than just a “reasonable” hike.
The 8th Pay Commission is likely to be formally constituted in April 2025. Earlier, the employee side of the National Council of Joint Consultative Machinery (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 the 8th Pay Commission lives up to the expectations of government employees!
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