8th Pay Commission: In the 8th Pay Commission, the salary of employees can increase from 14% to 54%. According to a financial services firm, the fitment factor can be from 1.83 to 2.46. Know how much the basic salary will increase according to this fitment factor.
8th Pay Commission: The 8th Pay Commission has not been formed yet. But, discussions are in full swing regarding the fitment factor. A report by financial services firm Ambit Capital has estimated that the new pay commission may recommend a fitment factor between 1.83 to 2.46 for employees. This estimate has been made on the basis of salary growth during the previous pay commissions.
Possibility of increase from 14% to 54%
According to the report, the actual salary increase (including basic pay + DA) can be at least 14% and maximum 54% in the 8th Pay Commission. However, the report also says that the possibility of a maximum increase of 54% is very low, as it will put a huge financial burden on the government.
According to a report by Ambit Capital, “The government may consider higher salary hikes to boost consumption, but a 54% hike like the 6th Pay Commission does not seem possible.”
Mid-range may see 30-34% hike
According to Ambit’s analysis, a ‘mid-range’ hike of 30-34% is the estimate that the government and the commission can consider. According to the report, the worst-case scenario could see a hike of 14.3% and the best-case scenario could see a hike of 54%. Keeping this in mind, three possible fitment factors have been fixed – 1.83 (minimum), 2.15 (median), and 2.46 (maximum).
Possible new salary on ₹40,000 basic salary
If an employee’s current basic pay is ₹40,000, then the possible total salary (including basic + DA) according to different fitment factors in the 8th Pay Commission can be something like this:
| Fitment Factor | Current Basic Salary |
Potential Salary
|
| 1.83 | ₹40,000 | ₹92,238 |
| 2.15 | ₹40,000 | ₹1,09,002 |
| 2.46 | ₹40,000 | ₹1,20,933 |
DA may increase by up to 60%
The report also said that currently the Dearness Allowance (DA) is around 55% and it may reach 60% by the end of 2025. In such a situation, a salary growth of at least 14% is considered certain under the 8th Pay Commission, which is according to the trends of the last four pay commissions. Government employees and pensioners are still waiting for the formation of the 8th Pay Commission and the announcement of its Terms of Reference.
What is the fitment factor?
The fitment factor is the multiplier used to determine the new salary of government employees when the new pay commission comes into effect. It is applied to the existing basic pay to determine the revised pay (basic + DA etc.).
For example, if an employee’s basic salary is ₹40,000 and the fitment factor is fixed at 2.15, his new total salary will be around ₹1,09,000. This is the standard formula for salary hikes that the pay commission recommends.
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