New Delhi. Modi government has given a big gift to lakhs of central and state employees by announcing the 8th Pay Commission. With its announcement, the calculation of their new salary has also started in the minds of the employees.
The government has clearly said that the 8th Pay Commission will be implemented from January 1, 2026. Along with this Pay Commission, employees are also going to get 2 big gifts. One is that a new fitment factor will be implemented and secondly, the existing dearness allowance (DA) of the employees will be merged with the basic salary.
Ever since the government announced the 8th Pay Commission, there has been speculation about the possible fitment factor for the salary hike of government employees. Apart from the fitment factor, everyone is also curious to know whether the basic salary will be merged with dearness allowance (DA) before implementing the fitment factor. Now the question is what and how much benefit will the employees get after the merger of fitment factor and dearness allowance (DA) with the basic salary.
What is the fitment factor?
Fitment factor is a formula that is used to revise the basic salary during the implementation of the pay commission. It determines the salary of the employees keeping in mind inflation and previous allowances, especially DA. For example, the fitment factor in the 7th pay commission was 2.57 percent. This means that if someone’s basic salary was Rs 30,000, the total salary with this fitment factor would be around Rs 77,100. There is a demand to increase the fitment factor to 2.83 in the 8th pay commission. Now if someone’s basic salary is Rs 50,000, then after applying the new fitment factor, the total salary will reach around Rs 1,41,500.
What is the role of dearness allowance?
If we look at the last 3 pay commissions, in the 5th, 6th and 7th pay commissions, the fitment factor was applied by combining dearness allowance with basic salary. When the 7th pay commission was implemented in January 2016, central government employees were receiving 125% DA on their basic salary. The commission suggested a fitment factor of 2.57. Then the government calculated the new salary by combining basic and DA, on which an increment of 14.22% was made. How much new salary will be made on this basis?
Let’s assume that an employee used to get a basic salary of Rs 10,000, on which he got DA of 125 percent (Rs 12,500). In this way, the total salary was Rs 22,500. The government had given an increment of 14.22 percent, which was Rs 3,199 of the total salary. After adding this, the new salary became Rs 25,700.
How much will be the increase in the 8th Pay Commission
If we apply the formula of the 7th Pay Commission to the 8th Pay Commission, then what will be the new salary? Let us assume that the government applies the fitment factor of 2.83 and also merges the existing DA. In this context, if the basic salary of an employee is Rs 50,000, on which he currently gets 55 percent DA and let us assume that in July the government increases the DA by 3 percent, then it will become 58 percent. This means that by December 2025, the total salary will be 50 thousand and its 58 percent DA (Rs 29,000) i.e. Rs 79,000. According to the fitment factor, it is believed that if the salary increases by 20 percent, then the total increase will be Rs 15,800 and the total salary will be Rs 94,800.
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