8th Pay Commission: How the Fitment Factor Will Impact Your Salary—Details Inside

Kuldeep Singh Chundawat

The Central Government has given the green signal for the formation of the 8th Pay Commission, sparking anticipation among central government employees and pensioners across the country. While the official notification is still awaited and the chairman and members are yet to be appointed, the groundwork for the commission is underway. Government employees are now looking forward to a significant revision in salaries, allowances, and pensions.

As with every Pay Commission formed roughly every 10 years, the 8th Pay Commission aims to revise and update compensation structures to keep pace with inflation, employee needs, and economic factors. At the heart of this revision lies the fitment factor—a key component in determining salary hikes.

📅 8 months ago

What is the Fitment Factor?

The fitment factor is a multiplier used to calculate the new basic pay from the existing pay structure. It plays a crucial role in revising the salaries, pensions, and allowances of government employees. Factors like inflation rates, cost of living, and the government’s fiscal capacity are all considered when determining this multiplier.

Under the 7th Pay Commission, the fitment factor was set at 2.57, meaning the new basic pay was 2.57 times the old basic pay. This led to an average salary hike of approximately 14.3%, with the minimum basic salary revised to ₹18,000.

8th Pay Commission Approved: Big Salary & Pension Hike Expected from January 2026

📅 8 months ago

How Does the Fitment Factor Affect Salary?

The fitment factor directly impacts the basic pay, which in turn influences all other components of the salary. Once the new salary structure is implemented, the Dearness Allowance (DA) resets to zero and starts accumulating from scratch based on inflation rates going forward.

Here’s a general breakdown of salary components for central government employees:

Basic Pay: Approximately 51.5% of the total salary
Dearness Allowance (DA): Around 30%
House Rent Allowance (HRA): Roughly 15%
Transport Allowance: The remaining component

A change in the fitment factor has a cascading effect, increasing not just basic pay but all allowances calculated as a percentage of it.

📅 8 months ago

Who Will Benefit from the 8th Pay Commission?

The upcoming Pay Commission will benefit nearly 50 lakh central government employees and around 65 lakh pensioners across INDIA. Once implemented, the revised pay structure will significantly improve financial stability and purchasing power for millions of households.

Author Profile

Kuldeep Singh Chundawat: My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.