The Fitment Factor Calculation Under the 8th Pay Commission Explained

 The Fitment Factor Calculation Under the 8th Pay Commission Explained

​How is fitment factor calculated for the 8th pay commission?

8th Pay Commission

The Union Cabinet has approved the formation of the 8th Pay Commission to adjust the pay of more than 50 lakh Central government employees. The announcement comes mere days before the Union Budget 2025. Along with salary revisions, the adoption of the commission’s recommendations will have an influence on the Dearness Allowance.

Increase in salary in 8th Pay Commission

The exact percentage of the salary hike under the 8th Pay Commission is yet to be disclosed.

While it will be speculative at this stage to tell the exact hike in salary which central government employees will get, however, the recommendations of the past commissions can give us a broad idea about overall impact.

The most critical aspect of a pay commission is the fitment factor. It is the key multiplier used to determine the revised salaries and pensions, which will play a significant role in the hike.

What is fitment factor

The fitment factor is used to calculate the revised basic salaries and basic pensions for government employees. It serves as a critical component of the Pay Commission’s recommendations. The revised basic pay is determined by multiplying the current basic pay with the fitment factor.

How fitment factor in central government salary hikes works

The 7th Pay Commission recommended a common fitment benefit of 2.57 to be applied for all central government employees. On the basis of this fitment factor, the minimum basic pay for central government employees increased to Rs 18,000 per month from the earlier basic salary of Rs. 7,000 (2.57 times the basic pay of the 6th Pay Commission).

Reasons for setting up of Pay Commissions by Union government

Central Pay Commissions are set up by the union government to review and recommend adjustments in the salaries and pensions of government employees. These pay commissions give recommendations on the required salary and pension adjustments for government employees keeping in view for inflation and other economic conditions.

Source: The Economic Times