The 8th Pay Commission was officially approved by the Union Cabinet on January 16, 2025, paving the way for a salary revision for central government employees. The new pay structure is expected to be implemented from January 1, 2026, though there are speculations that it might face delays.
What is the Fitment Factor?
The fitment factor is a multiplication unit used to determine the revised base salaries and pensions of government employees. It plays a key role in salary hikes and ensures that pay scales are adjusted based on inflation and cost of living.
For example, a fitment factor of 2.57 means that the new salary will be 2.57 times the existing salary, effectively leading to a 157% increase in pay.
Proposed Fitment Factor Under the 8th Pay Commission
The National Council-Joint Consultative Machinery (NC-JCM), which represents government employees, has proposed a fitment factor of at least 2.57—the same as what was used in the 7th Pay Commission. If this is approved, government salaries and pensions will increase significantly.
Here’s what the changes would look like:
- Current minimum salary: ₹18,000 per month
- With 2.57 fitment factor: ₹46,260 per month
- Current minimum pension: ₹9,000 per month
- With 2.57 fitment factor: ₹23,130 per month
Demand for a Higher Fitment Factor
There have also been demands for a fitment factor of 2.86, which would result in an even higher salary increase. However, former Finance Secretary Subhash Garg dismissed this as unrealistic, calling it “asking for the moon.”
Instead, he suggested a fitment factor of around 1.92, which would lead to:
- Revised minimum salary: ₹34,560 per month
- Hike percentage: 92%
Why the Demand for a Higher Fitment Factor?
Shiv Gopal Mishra, Secretary (Staff Side) of NC-JCM, emphasized that the fitment factor should be at least 2.57 or higher, as the current formula for salary calculation is outdated.
The 7th Pay Commission used a formula based on:
- The 15th Indian Labour Conference (ILC) resolution of 1957
- Dr. Aykroyd’s minimum living wage formula, which only considered essential commodities like food and housing
However, the formula does not account for modern-day expenses such as internet, education costs, and medical inflation, making a higher fitment factor necessary.
When Will the 8th Pay Commission Be Implemented?
The 8th Pay Commission is expected to be implemented from January 1, 2026. However, some reports suggest that it might face delays, leading to uncertainty about when employees will start receiving their revised salaries.
The approval of the 8th Pay Commission marks a crucial step in revising central government employees’ salaries and pensions. While the proposed fitment factor remains a point of debate, employees are hopeful for a higher multiplier to meet modern-day expenses. With the expected implementation in 2026, all eyes are now on the final decision regarding the fitment factor, which will determine the salary hikes for millions of government employees.
