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Curiosity about the recommendations of the 8th Pay Commission and the new pay matrix is continuously increasing among millions of central government employees and pensioners. The biggest focus of government employees is on how much fitment factor the government decides in the new pay commission. If the government accepts the fitment factor of 2.57 of the 7th Pay Commission as the minimum basis, or amends it as per the demands of the employee unions, then there will be a huge jump in the basic pay and take-home salary of Group-D (MTS), School Teachers (TGT) and Class-1 officers.
After all, what is fitment factor and how is salary decided?
In the recommendations of the Pay Commission, ‘Fitment Factor’ is the main multiplier on the basis of which the basic pay of the existing Pay Commission is converted into the revised basic pay of the new Pay Commission.
New Basic Pay = Existing 7th CPC Basic Pay × Fitment Factor
It is noteworthy that after the implementation of the 7th Pay Commission, a fitment factor of 2.57 was fixed, due to which the minimum basic pay of central employees directly increased from ₹ 7,000 to ₹ 18,000. After the implementation of the new Basic Pay, the accumulated Dearness Allowance (DA) gets reset to zero percent (0%). After this, House Rent Allowance (HRA) and Transport Allowance (TA) are added again on the basis of new basic pay.
2.57 Salary calculation of different posts on fitment factor
If the government adopts the minimum 2.57 fitment factor of the 7th Pay Commission as the basis for the 8th Pay Commission, then the new basic pay of employees of different pay levels will be calculated as follows:
| Post and Pay Level | Current 7th CPC Basic Pay | New basic pay at 2.57 fitment factor | Straight increase in monthly basic pay |
| Peon/Support Staff (Level 1 – MTS) | ₹18,000 | ₹46,260 | ₹28,260 |
| School Teacher/TGT (Level 7) | ₹44,900 | ₹1,15,400 (About) | ₹70,500+ |
| Class-1 Officer/Gazetted Officer (Level 10) | ₹56,100 | ₹1,44,200 (About) | ₹88,100+ |
1. Group-D/MTS (Level 1 – MTS Staff)
Under the 7th Pay Commission, the minimum basic pay of employees working at Level-1 is ₹ 18,000. The new basic pay will increase after the fitment factor of 2.57 is implemented. ₹46,260 This will be done, which will directly increase the basic salary of the employees by ₹ 28,260 per month.
2. School Teacher / TGT (Level 7 – TGT Teacher)
The current basic pay of TGT teachers falling under Level-7 is ₹44,900. By applying fitment coefficient of 2.57, the new revised basic pay as per the pay matrix will increase to ₹1,15,400 (Exact value will reach the level of ₹ 1,15,393). This will see an increase of more than ₹ 70,500 in the basic salary of teachers.
3. Class-1 Gazetted Officer (Level 10 – Entry Level Officer)
The current basic salary of Class-1 officers entering at Level-10 is ₹56,100. Their new basic pay will increase based on fitment factor by 2.57%. ₹1,44,200 (The exact value will be ₹1,44,177), which is a direct increase of about ₹88,000 per month in the basic pay.
How much will be the impact on in-hand (take-home) salary?
Estimated increase in the total take-home salary of employees after the implementation of the new pay commission. Effective increase of 20% to 30% is recorded. The main reason for this is that the increased dearness allowance over the years gets absorbed in the new basic pay and DA again starts from 0%. Additionally, there is a restructuring of HRA on the new and increased basic pay depending on the category of cities (30% in
Demands of employee unions and the way forward
The fitment factor currently expected by financial analysts and employee unions ranges from 1.92x to 2.86x. If the 2.57 fitment factor is accepted as the minimum standard in the 8th Pay Commission, the minimum basic pay will jump from ₹18,000 to directly cross ₹46,000. However, the final decision on the final fitment factor, pay matrix and allowances will be clear only after the official report of the Pay Commission constituted by the government and the approval of the Union Cabinet.
(Disclaimer: This news report is an analytical report based on the existing pay matrix of the 7th Pay Commission, calculation model of 2.57 fitment factor and estimates of financial analysts.)