Major Changes in Pensions After the 8th Pay Commission, Learn About the Impact of the Fitment Factor

8th Pay Commission Fitment Factor: Between March and May of every year, most salaried employees are concerned about their job profile, appraisal, increments, and arrears. While the increment process in private companies is lengthy and complex, the salary hike process for government employees is also ongoing. The 8th Central Pay Commission has now been formed and is required to submit its recommendations to the government within 18 months.

This is an important opportunity for government employees to share their views on how much their salaries should increase, how arrears should be calculated, what changes should be made to pension benefits, and what should be the fitment factor. The central government has sought suggestions under this process and has released a questionnaire on the MyGov portal. The deadline for submitting suggestions is March 16, 2026. The Commission will prepare a report based on feedback on changes to salaries, allowances, and pension structures that will impact all government employees.

What did the Commission say on its website?

The Commission stated on its website that it is seeking input from all stakeholders to provide sound and balanced recommendations. This includes employees of the central government and union territories, judicial officers, court staff, members of regulatory bodies, employee organisations, pensioners, researchers, academics, and the general public.

Learn about the changes in the fitment factor

The fitment factor is mentioned because it is a multiplier tool used to calculate employees’ new salaries. The fitment factor may be set at 1.92 in the 8th Pay Commission. The formula for the new salary is simple: Basic Salary × Fitment Factor = New Salary. For example, if the basic salary is ₹18,000, then ₹18,000 × 1.92 = ₹34,560. HRA, TA and DA will also be calculated on this basis.

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