Central government employees and pensioners are keenly awaiting clarity on the 8th Pay Commission (8th CPC), particularly on the fitment factor that will
determine salary and pension revisions across all pay levels. The commission, chaired by former Supreme Court judge Justice Ranjana Prakash Desai, is expected to submit its report by late 2027, after which the government will review and approve the recommendations. Revised pay scales are likely to be announced in the second half of 2027, possibly around the festive season. The fitment factor is a multiplier applied to an employee’s existing basic pay to arrive at the revised salary under the new pay matrix. Experts agree this will be the single most important driver of pay hikes under the 8th CPC. During the 7th Pay Commission, a fitment factor of 2.57 was used, which significantly raised salaries across the board. According to Ramachandran Krishnamoorthy, Director – Payroll Services at Nexdigm, the fitment factor under the 8th CPC could fall in the range of 1.9 to 2.5, while Pratik Vaidya, MD and Chief Vision Officer at Karma Management Global Consulting Solutions, estimates a slightly wider range of 1.83 to 2.46, without ruling out a repeat of 2.57. A uniform fitment factor would ensure the same percentage increase for all employees, though higher pay levels would see much larger gains in absolute rupee terms. Illustrations suggest that with a fitment factor of around 2.15, an entry-level employee at Level 1 could see their basic pay rise from ₹18,000 to about ₹38,700, while a Level 10 officer’s basic pay could increase from ₹56,100 to over ₹1.2 lakh. Senior-most officers at Level 18 could see their basic salary exceed ₹5.3 lakh. Some projections assume even higher fitment factors, such as 2.86, to show the upper bound of possible increases. Under such a scenario, basic pay for lower-level staff like peons and clerks could rise by over ₹30,000, while Group A officers could see increases exceeding ₹1 lakh per month. Conversely, more conservative assumptions—such as a 1.7 fitment factor—would still result in meaningful hikes, particularly for Levels 1 to 6. A key debate is whether the government might apply different fitment factors for different pay levels. Historically, both the 6th and 7th Pay Commissions used a uniform factor to maintain parity, and many employee representatives expect the same approach this time. However, Krishnamoorthy notes that the government is not legally bound to uniformity and could opt for higher fitment factors for lower-paid employees to provide targeted relief, address pay compression, and manage fiscal costs. Vaidya, however, believes a uniform multiplier is more likely, arguing that inflation and economic conditions affect all employees similarly. The impact of the final decision will extend beyond serving employees to pensioners, for whom minimum pension levels are a sensitive issue. Higher fitment factors could substantially raise pensions, and the commission may also recommend a revised pension floor. Overall, while the exact numbers remain uncertain, most experts agree that the 8th Pay Commission will deliver a significant pay and pension reset, with the fitment factor—whether uniform or differentiated—playing a decisive role in shaping outcomes for Group A, B, C and D employees as well as retirees.
