There is a possibility of increase in the salary of central employees in the 8th Pay Commission. Like before, a new fitment factor can be implemented by adding DA to the basic pay.
This will increase the salary in a balanced and uniform manner. The fitment factor can be 3.0
The central government had announced the formation of the 8th Pay Commission in January 2025, which will come into effect after the completion of the 7th Pay Commission in December 2025. Since this announcement, the discussion has intensified on how the new pay commission will decide the salary of the employees. Especially, everyone’s eyes are fixed on the merger of the fitment factor and dearness allowance (DA).
What is the fitment factor?
The fitment factor is the multiplier with the help of which the basic salary of the employees is converted into the new pay scale. Its purpose is to ensure that there is a uniform increase at all levels, and the effect of inflation and allowances is also included in it.
How was DA merged in the previous pay commissions
Pay Commission | DA percentage at the time of merge | Applicable Fitment Factor |
5th commission | 74% | 1.86 |
6th Commission | 115% | 1.86 + Grade Pay |
7th Commission | 125% | 2.57 |
Central government employees were receiving 125% DA on their basic pay before the 7th Pay Commission was implemented in January 2016. The commission determined a fitment factor of 2.57 on this basis, which included basic pay, 125% DA and actual increase of about 14.22%.
Let us understand this with an example under the 7th Pay Commission. Suppose the basic salary of an employee was ₹10,000.
- 125% AND = ₹12,500
- Total = ₹22,500
- 14.22% Actual increase = ₹3,199.5
- New Salary = ₹25,700
- Fitment factor = 25,700 / 10,000 = 2.57
What can be the changes in 8th pay commission
Currently, employees are getting more than 50% DA and it is expected to reach close to 70% by 2025. In such a situation, it is quite likely that the new pay commission will also merge DA into the basic salary like before and apply a fitment factor on it. If sources are to be believed, the new fitment factor can be 3.0 or more.
Will employees who retire before January 1, 2026 be left out?
Often the question arises that will the employees who retire before the implementation of the new commission be deprived of its benefits? Usually the government gives retrospective effect in such cases, that is, the new pay scale is applicable from the previous date. In such a situation, there is a possibility that they will also get its benefit, although the final decision will depend on the government notification.
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