8th Pay Commission: Central government employees and pensioners are closely tracking developments around the 8th Pay Commission, which is expected to bring
long-awaited clarity on revised pay scales and pensions. The commission, chaired by Ranjana Prakash Desai, is in the process of finalising its recommendations, including the all-important fitment factor. Once submitted and approved by the Centre, the new pay structure will apply across Group A, B, C and D employees, along with corresponding changes in pension payouts. While expectations are running high, the actual size of the salary hike will depend largely on one crucial element, the fitment factor. What Is The Fitment Factor And Why Does It Matter The fitment factor is essentially a multiplier used to revise an employee’s existing basic pay. It acts as the foundation of the new pay matrix. During the 7th Pay Commission, a fitment factor of 2.57 was applied, which raised the basic pay from Rs 7,440 under the 6th Pay Commission to Rs 18,000. A similar or higher multiplier under the 8th Pay Commission could result in substantial jumps in salaries and pensions. Explaining its significance, Ramachandran Krishnamoorthy, director, payroll services, Nexdigm, says the key determinant of the salary increase will be the fitment factor. Pratik Vaidya, managing director and chief vision officer, Karma Management Global Consulting Solutions Pvt Ltd, also agrees with this assessment, stating that the fitment factor will be the primary driver of any pay hike, as per a report from The Times of India. Likely Fitment Factor Range Under The 8th CPC On the possible range, Vaidya says that it can be in the range of 1.83 and 2.46, though he does not rule out a 2.57 fitment factor being adopted again by the 8th Pay Commission. Krishnamoorthy, meanwhile, estimates that the fitment factor could fall between 1.9 and 2.5 and should ideally be implemented uniformly across all pay levels, the report added. These projections suggest that even a modest change in the multiplier could have a significant impact on take-home pay across cadres. How Salaries Could Change At Different Fitment Levels If the fitment factor is fixed at 2.15, salaries across levels would see a noticeable rise. For Level 1 employees, including entry-level Group D staff, the basic pay of Rs 18,000 could increase to Rs 38,700, a jump of about Rs 20,700. At Level 10, the entry point for Group A officers, basic pay may climb from Rs 56,100 to Rs 1,20,615, implying an increase of Rs 64,515. Senior-most Level 18 officers could see their basic pay rise from Rs 2,50,000 to Rs 5,37,500. A higher fitment factor of 2.86 would amplify these gains further. Under this scenario, Level 1 pay could rise to Rs 51,480, while Level 10 salaries may reach Rs 1,60,446. For Level 18 officers, the revised basic pay could touch Rs 7,15,000, according to ET. If the commission retains a 2.57 fitment factor, similar to the 7th Pay Commission, Level 1 salaries could increase to Rs 46,260, Level 10 to Rs 1,44,177, and Level 18 to Rs 6,42,500. Ultimately, the final figures will hinge on the fitment factor recommended by the 8th Pay Commission and the central government’s approval.
