8th Pay Commission: How Much Salary Hike Will Central Govt Employees Get If Fitment Factor Is 2.86?
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8th Pay Commission: Expectations are high among government employees that the fitment factor, revised pay matrix, allowances, and pension structures will be finalised in 2025.
8th Pay Commission: The central government announced the 8th Central Pay Commission (CPC) in January this year, well before the current pay structure expires in December 2025. The upcoming commission is eagerly awaited by millions of central government employees and pensioners, as it is expected to revise pay and pension structures significantly.
According to reports, the government is already in the process of filling 42 key positions, including consultants and the chairperson of the 8th CPC. The new commission is expected to begin its work soon, once the Terms of Reference (ToR) are finalised. One of the key areas of focus will be the revision of the fitment factor, which plays a crucial role in determining salary and pension increases.
The 8th Pay Commission will revise salaries, pensions, and allowances, directly benefiting over 50 lakh central government employees and over 65 lakh pensioners.
What Is the Fitment Factor?
The fitment factor is a multiplier used to calculate the revised basic pay for central government employees when a new pay commission is implemented. It ensures uniform salary hikes during the transition from the old to the new pay structure.
Formula:
New Basic Pay = Old Basic Pay × Fitment Factor
Under the 7th Pay Commission, the fitment factor was set at 2.57. For instance, if an employee's basic pay was Rs 10,000 under the 6th CPC, their revised pay became:
If current basic pay = Rs 20,000
Then new basic pay = Rs 20,000 × 2.86 = Rs 57,200
This reflects a remarkable jump in take-home salary, especially compared to the hike seen during the previous pay commission.
(Note: These are estimated values assuming a uniform fitment factor.)
What Lies Ahead for Government Employees?
While the government has not yet made an official announcement, expectations are high that the fitment factor, revised pay matrix, allowances, and pension structures will be finalised in 2025. Employees are particularly keen to learn whether the 8th CPC will propose a uniform fitment factor across all levels, which could simplify salary structures and enhance fairness.
Until official announcements are made, government employees remain in anticipation, hoping that the 8th Pay Commission brings substantial financial relief in line with rising costs of living and inflation.
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First Published:
May 10, 2025, 14:15 IST
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