Lakhs of central employees and pensioners across the country are eagerly waiting for the formation of the 8th Pay Commission and its recommendations. The central government had approved the formation of the 8th Pay Commission on January 16, 2025 itself. It is expected that the recommendations of the new Pay Commission will be implemented from January 1, 2026.
However, the appointment of the members and chairman of the commission is not yet complete, due to which there is some curiosity. Through this commission, there will be a major revision in the salary, pension, and allowances of about 50 lakh government employees and 65 lakh pensioners of the country, which will improve their standard of living.
Pay Commission and Fitment Factor
As soon as the recommendations of the Pay Commission are mentioned, the fitment factor is definitely talked about. Actually, the fitment factor plays an important role in pay commission. It is a multiplier, on the basis of which the salary and pension of all employees increase in the same proportion. This ensures that those working in all grades or pay bands get equal increase. This is a transparent and equitable way to ensure salary hikes.
Know about the potential hikes in the 8th Pay Commission
Although the fitment factor has not been officially announced by the 8th Pay Commission yet, it is estimated that it could be around 2.5. If this happens, the basic salary of an employee who is currently earning ₹40,000 monthly could increase to ₹1,00,000 (₹1 lakh). Similarly, there could be a huge increase in pensions too. This would be a significant jump that would strengthen the financial position of employees and pensioners.
Understand salary in an easy way with the fitment factor
Suppose the current basic salary of an employee is ₹40,000 and the fitment factor is fixed at 2.5, then the new salary will be as follows:
₹40,000 (current basic salary) \ times 2.5 (fitment factor) = ₹1,00,000 per month.
However, this is an estimate, and the final decision will be taken by the government after the commission’s report. This calculation clearly shows how big an impact the fitment factor can have on your salary. What changes were made in the Seventh Pay Commission
In the Seventh Pay Commission, the minimum basic salary was increased from ₹7,000 to ₹18,000. Then the fitment factor was fixed at 2.57. Pension was also increased from ₹3,500 to ₹9,000. Apart from this, a health insurance scheme was also implemented for government employees. These changes brought positive change in the lives of millions of employees and pensioners.