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A fitment factor of 1.83 would raise the basic salary from Rs 18,000 to around Rs 32,940, while a factor of 2.47 would raise it to Rs 44,280.
The 8th Pay Commission is expected to fix a fitment factor between 1.92 and 2.86.
8th Pay Commission News: The long wait for over 1 crore government employees and pensioners has finally ended, as the Cabinet, led by Prime Minister Narendra Modi, has approved the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC). The Commission is expected to submit its recommendations within 18 months from the date of its constitution.
Although the Cabinet had approved the formation of the 8th Pay Commission in January this year, the delay in finalising the ToR had caused anxiety and uncertainty among central government employees and pensioners.
The Central Pay Commissions are set up periodically to review the pay structure, retirement benefits, and service conditions of Central Government employees and pensioners, and to recommend necessary revisions. Traditionally, the implementation of Pay Commission recommendations takes place roughly once every ten years.
8th Pay Commission: How Much Will Salaries Increase?
There’s a set formula for salary increases, in which the fitment factor plays a major role. The fitment factor is a multiplier used by the government to revise the basic salary of employees when a new Pay Commission is implemented. It helps determine the new pay by applying the factor to the existing basic salary.
In the Seventh Pay Commission, it was 2.57 percent. At that time, the minimum basic salary increased from Rs. 6,000 to Rs. 18,000.
This time, if a fitment factor of 2.47 percent is applied, the new basic salary could reach close to Rs. 30,000.
Let’s try to understand this through calculations. Suppose your current basic pay is Rs. 18,000, then with a fitment factor of 2.47 percent, this salary would increase to Rs. 44,460. However, if the fitment factor remains at 1.86 percent, the new basic pay will be Rs. 33,480.
A fitment factor of 1.83 would raise the basic salary from Rs 18,000 to around Rs 32,940, while a factor of 2.47 would raise it to Rs 44,280.
The gross salary includes the basic salary, house rent allowance (HRA), and dearness allowance (DA). The DA, or dearness allowance, is paid according to the inflation rate and is updated twice a year. For this calculation, we’ll assume the DA is zero.
The house rent allowance (HRA) is divided into three categories:
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30% of basic pay for employees living in metro cities
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20% for those in Tier-2 cities
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10% for Tier-3 cities
So, the formula for the new gross salary will be:
New Gross Salary = (Current Basic Pay × Fitment Factor) + DA + HRA (as per class)
Assuming the new basic salary increases based on a fitment factor of 2.47, the revised basic pay will be Rs 44,460. Taking HRA as 30% and DA as 0, we apply it in the formula:
44,460 + 0 + 13,338 = Rs 57,798
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
October 28, 2025, 17:39 IST
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