Possibility of big increase in salary from 8th pay commission, pay structure will depend on fitment factor

On 16 January, the Central Government announced the formation of the 8th Pay Commission, which has intensified discussions about the salary hike between government employees and pensioners. With the implementation of the new Pay Commission, a change in dearness allowance (DA), pension, and other allowances is also expected, which can strengthen the economic condition of the employees.

What is a fitment factor?

The Fitment Factor is a Multiplier on the basis of which the basic salary of government employees is calculated.

• 6th Pay Commission: 1.86

• 7th Pay Commission: 2.57

• 8th Pay Commission: Possibility of staying between 2.28 and 2.86

If it is 2.86, it is possible to increase salary from 40% to 50%.

An example of a possible increase in salary

If the current basic salary of an employee is ₹ 20,000 and the fitment factor 2.86 is fixed, then there will be a new salary:

• ₹ 20,000 × 2.86 = ₹ 57,200

Possible increase in minimum wage and pension

• Current minimum wage: ₹ 18,000

• New Possible Salary: ₹ 51,480 (₹ 18,000 × 2.86)

• Current minimum pension: ₹ 9,000

• New Possible Pension: ₹ 25,740 (₹ 9,000 × 2.86)

These additional facilities can be available from 8th pay commission

1. Dearness allowance (DA): DA will also increase as salary increases

2. Productivity Pay: Additional salary profit possible based on functionality

3. other allowances:

   • House Rent Allowance (HRA)

   • Travel allowance (TA)

   • Medical allowance and other facilities

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