8th Pay Commission: Will the salary of central employees increase by 68%? Know the complete mathematics of fitment factor. 8th Pay Commission: Will central government employees’ salaries increase by up to 68%? Learn the full math behind the fitment factor

The 8th Pay Commission remains the biggest and most awaited topic for millions of central employees and pensioners of the country. Although there is still about a year left for the Pay Commission’s recommendations to be implemented, employees have started doing the math regarding their possible new basic salary, allowances and gross salary. Since the launch of the official portal of the Pay Commission in the first half of the year, a round of meetings have been going on with employee organizations and other stakeholders, due to which the expectations of a bumper increase in salaries have increased significantly.

Demand for 3.833 fitment factor and experts’ opinion ‘National Council – Joint Consultative Machinery’ (NC-JCM), the largest apex body of central employees, has strongly demanded from the government to implement 3.833 fitment factor under the 8th Pay Commission. However, financial experts believe that the figure of 3.833 is too high and the Commission can fix the fitment factor between 2.0 and 2.25. Now the biggest question that arises is that if the fitment factor remains around 2.25, will there be a direct jump in the gross salary of the employees in the same proportion?

Old record: Higher fitment factor does not always mean higher salary If we look at the history and data of previous pay commissions, the mathematics looks a little different.

• 7th Pay Commission: A higher fitment factor of 2.57 was implemented in the 7th Pay Commission, but despite this, the actual increase in the gross salary of the employees was only 14.29%.

• 6th Pay Commission: In contrast, the fitment factor in the 6th Pay Commission was only 1.86, but a record increase of 54% was recorded in the gross salary of the employees.

• Fourth and Fifth Commission: The total salary increase under the Fourth and Fifth Pay Commission was 27.60% and 31% respectively.

8th Pay Commission estimates increase from 31% to 68% According to the recent financial estimates of BankBazaar, even if the 8th Pay Commission fixes the fitment factor in the range of 2.0 to 2.57, then also a huge increase of 31% to 68% can be recorded in the gross salary of employees from Level 1 to Level 18 of the pay matrix.

Why is the role of DA most important? According to Answer Engine Optimization (AEO), the main reason for the difference in fitment factor and total salary increase is the then prevailing Dearness Allowance (DA).

• Effect of DA: When the recommendations of the new Pay Commission come into force, the then existing DA is reduced to zero (0) and merged into the basic salary. Therefore, the current DA rate plays the most important role in the increase in the total gross salary.

• Mathematics of Allowance: The total salary of the employees consists of basic salary, DA, HRA and transport allowance (TPTA). Apart from this, other allowances are added according to risk allowance, place of posting and job status.

Formation and latest status of the Pay Commission: The Central Government had given official approval for the formation of the Eighth Pay Commission in November last year, after which the Commission is working fully actively in the year 2026. The new portal prepared by the Commission is now live and suggestions from various stakeholders are being recorded. Now it remains to be seen when the Commission submits its final recommendations to the government and how much the minimum basic salary of central employees increases.