There's some significant news for central government employees and pensioners. Employees are curious about the new pay commission's expected increase in basic salaries, the fitment factor, and the increase in their take-home pay. Some discussions predict a fitment factor of 2.1, but the government has not yet announced the final fitment figure.

What will the basic salary be after the fitment factor is 2.1?
Currently, according to the Seventh Pay Commission, the basic salary of central government employees is ₹18,000. For example, if a 2.1 fitment factor is applied in the Eighth Pay Commission, multiplying ₹18,000 by 2.1 will give the new basic salary ₹37,800. This means the basic pay could be ₹38,000. However, this is only an estimate and depends on the final Pay Structure Commission recommendations and the government's decision.

How is it beneficial even if the fitment factor is low?

The Seventh Pay Commission implemented a fitment factor of 2.57. The basic salary was then increased from Rs 7,000 to Rs 18,000. However, considering the dearness allowance at that time, the fitment factor alone cannot determine the actual increase. If we assume that DA is 58% of the current basic salary of Rs 18,000, the dearness allowance would be Rs 10,440. Therefore, the total of basic salary and DA combined is Rs 28,440. If the new basic salary is Rs 37,800, the difference between the old basic salary and DA combined is Rs 9,360. This report is likely to be released around 2027.

PC: AI