8th Pay Commission: Central employees are looking forward to the recommendations of the Eighth Pay Commission. The Commission is expected to present its suggestions to the government in about 18 months. In the meantime, projections are being made regarding salary hikes for central employees. The fitment factor will indeed be crucial in determining these salary increases. Let’s explore how the fitment formula contributed to salary adjustments in the 6th and 7th Pay Commissions. Additionally, let’s consider the potential impact of the estimated fitment formula on central employees’ salaries once it is put into effect.
Details of 6th and 7th Pay Commission
The 6th Pay Commission’s recommendations were put into action in March 2008, but they were retroactively effective from January 1, 2006. The lowest entry-level salary was set at Rs 6,600, while the highest salary reached Rs 80,000 (Rs 90,000 for the Cabinet Secretary). The ratio of the minimum to maximum salaries was 1:12.
Regarding the 7th Pay Commission, a significant change occurred: the pay band and grade pay system were replaced with the pay matrix. A fitment factor of 2.57 was introduced, resulting in a 2.57-fold increase in the basic salary of central employees. The minimum salary was established at Rs 18,000, and the maximum at Rs 2,50,000 (for the Cabinet Secretary level). Additionally, an annual increment of 3% was set for all employees. It’s important to note that the 7th Pay Commission’s tenure will conclude on December 31, 2025.
How much salary can increase under the 8th Pay Commission?
Last year, the government established the Eighth Pay Commission. A notification regarding its formation was released in November 2025. Its recommendations may take around 18 months to be implemented, but they could take effect from January 1, 2026. Employee organizations are advocating for the fitment factor to be set between 3.0 and 3.25 this time. If this occurs, employees could experience a substantial salary increase.
How is the fitment factor determined?
The fitment factor is based on the previous pay commission’s basic salary, dearness allowance (DA), annual increment, growth factor, family units, etc. Manjeet Singh Patel, national president of the All India NPS Employees Federation, told ET that if the current DA is 58% and there is a 12% increase in DA by the time the 8th Pay Commission recommendations are implemented, it will reach 70%.
According to Patel, the government calculates a growth factor, which was 24% last time. When calculating the fitment factor, the Pay Commission also considers family units, which were 3 last time and may be recommended this time. If the Commission considers 5 family units, a further increase of 66% is expected.
Understand with an example
If the fitment factor is set to 3 in the Eighth Pay Commission, the salary of a Level 1 employee will increase from Rs 18,000 to Rs 54,000. This means a Rs 36,000 increase in salary for a Level 1 employee. Meanwhile, the salary of a Level 18 central government employee could increase from Rs 250,000 to Rs 750,000. Similarly, the salary increase will depend on the fitment factor.