The 8th Pay Commission has not been formed yet, but discussions are already going on about the fitment factor. A report by financial services firm Ambit Capital has estimated that the new Pay Commission may recommend a fitment factor between 1.83 and 2.46 for employees. This estimate is based on the salary growth seen during the previous Pay Commissions.
Possibility of 14% to 54% Salary Increase
According to a report by Ambit Capital, the total salary increase (including basic pay + DA) under the 8th Pay Commission can be at least 14% and at most 54%. However, the report also mentions that a 54% increase is very unlikely, as it would put a heavy financial burden on the government.
Ambit Capital said, “The government may consider a higher salary increase to boost consumption, but a 54% hike, like in the 6th Pay Commission, does not seem possible.”
30% to 34% Hike Most Likely
As per Ambit’s analysis, a mid-range increase of 30% to 34% seems more likely. This range is something the government and the Pay Commission may consider. According to the report, in the worst-case scenario, the increase could be around 14.3%, while in the best-case scenario, it could go up to 54%.
Based on this, three possible fitment factors have been estimated:
- 1.83 (Minimum)
- 2.15 (Mid-range/Median)
- 2.46 (Maximum)
What Can Be the New Salary on ₹40,000 Basic Pay?
If an employee’s current basic salary is ₹40,000, then the possible total salary (Basic + DA) under different fitment factors can be:
| Fitment Factor | Current Basic Salary | Possible New Salary |
|---|---|---|
| 1.83 | ₹40,000 | ₹92,238 |
| 2.15 | ₹40,000 | ₹1,09,002 |
| 2.46 | ₹40,000 | ₹1,20,933 |