8th Pay Commission: The countdown has commenced for the official establishment of the 8th Pay Commission by the Central Government. Concurrently, there is a sense of apprehension and anticipation among employees regarding the ultimate decision on the fitment factor. This fitment factor serves as the basis for determining the salary adjustments for central government employees.
While there has been no formal declaration regarding the fitment factor, media sources indicate that it is expected to rise between 1.92 and 2.86 for the 8th Pay Commission.
Impact of the fitment factor on gross salary
Reports suggest that the lack of visible impact of the fitment factor on gross salaries can be attributed to the presence of various other components within the salary structure. The Pay Commission takes into account numerous factors, including the integration of dearness allowance into the basic salary and the revision of other allowances, indicating that the fitment factor is applied solely to the employee’s basic salary.
Actual average increase
For instance, during the 7th Pay Commission, a fitment factor of 2.57 was utilized for the revision of pay and pensions, leading to an increase in basic pay from Rs 7,000 to Rs 18,000. However, the actual average increase in pay and pensions for employees in Levels 1 to 3 was approximately 15 percent, with higher increments observed for those in Levels 4 to 10.
The Finance Ministry has dismissed claims that the basic pay will be combined with the dearness allowance as a temporary relief measure for government employees. The Centre has stated that an announcement regarding the 8th Pay Commission will be made in due course, with some reports suggesting that the commission may be officially constituted in April.