8th Pay Commission: Why is the fitment factor important for employees? How much will salaries increase?

8th Pay Commission: – The Central Government may approve the formation of the 8th Pay Commission at any time. The committee is likely to be formed on the occasion of Diwali. Once implemented, central employees will see a significant salary increase. The formula for salary increases will be the fitment factor. It is expected that the fitment factor will be around 1.96, approximately equal to the minimum basic pay.

Additional salary and house rent allowances will likely increase the total salary. It is speculated that even though the new Pay Commission will be implemented in 2027, its benefits are expected to be implemented from January 1, 2026. Approximately 5 million employees and 6.5 million pensioners will receive their arrears under the new Pay Commission structure.

Understand the Fitment Factor Formula

The fitment factor was the criterion for salary increases in the Seventh Pay Commission. The new Pay Commission will also calculate salaries based on the fitment factor. The Sixth Pay Commission set a minimum salary of ₹7,000. When the government implemented the 7th Pay Commission, the fitment factor was 2.57. At that time, the minimum basic salary increased by ₹11,000 to ₹18,000.

Furthermore, if the fitment factor in the 8th Pay Commission remains between 1.96 and 2.86, the salary will still increase. The minimum basic salary will increase to ₹32,280. This calculation does not include DA. House rate allowance will be paid separately, depending on the city of posting.

How will the salary increase?

You will be pleased to know that salaries will increase at every level. Consider the current salary of a Level 9 central government employee. The basic salary will be Rs 53,100 plus DA (58% of the basic salary). Additionally, there will be Rs 30,798 HRA (27% of the basic salary for metro cities like Delhi), and a total salary of Rs 14,337 (Rs 98,235 revised as per the 8th Pay Commission). New basic salary: Rs 1,04,076 DA reset.

How much has the DA increased?

The central government has increased the DA by 3% in the second half of 2025. This has now increased the DA to 58%. Previously, central government employees were receiving 55% DA. The increased DA rates will be effective from July 1, 2025. The previous DA increase was effective from January 1, 2025. The government increases the DA twice every year.