There’s good news for central government employees regarding the upcoming 8th Pay Commission. Discussions are ongoing regarding the fitment factor, which plays a crucial role in determining salary and pension increases. If the fitment factor is set at 2.86, central government employees could see a substantial increase in their basic salary.

What is the Fitment Factor?

The fitment factor is essentially a multiplier used to calculate the revised basic salary of government employees and pensioners. The 7th Pay Commission had recommended a fitment factor of 2.57, while the 6th Pay Commission applied a factor of 1.86. For the 8th Pay Commission, experts believe the fitment factor could range between 2.28 to 2.86, potentially increasing the basic salary by 40-50%.

Salary Increase Under the 8th Pay Commission

With a fitment factor of 2.86, an employee earning a basic salary of ₹20,000 could see a salary increase to ₹57,200, representing a significant increase of ₹37,200. According to reports, the basic minimum salary is expected to be more than ₹40,000, with perks, allowances, and performance pay also likely to increase.

• Current Basic Salary: ₹20,000

• New Salary with 2.86 Fitment Factor: ₹57,200

• Salary Increase: ₹37,200

This will be a considerable relief for government employees, reducing the impact of inflation.

Impact on Pension

The pension will also see a rise. For example, a pension of ₹9,000 could increase to ₹36,000 if the fitment factor is 2.86. This increase applies to both active employees and pensioners under the new scheme.

Dearness Allowance (DA)

The Dearness Allowance (DA) was recently increased by 2% from 53% to 55%. The new DA will be applicable from March 2025. The next DA revision will occur in November 2025, which will be the last DA revision under the 7th Pay Commission before the 8th Pay Commission is implemented from January 2026.

What Can Employees Expect?

If the 8th Pay Commission recommends a fitment factor of 2.86, government employees can expect:

1. A basic salary increase of 40-50%.

2. Increased pension for pensioners.

3. Higher allowances, such as House Rent Allowance (HRA) and Travel Allowance (TA), with improved perks.

4. A more comfortable standard of living, with salary adjustments to account for inflation.

Conclusion

The 8th Pay Commission promises significant benefits for central government employees, especially with the potential increase in the fitment factor to 2.86. This will provide much-needed financial relief and help mitigate inflation's impact, with potential salary increases ranging from 25% to 30% and pension hikes that could go up to 40-50%.