The tenure of the 7th Pay Commission is going to end on 31st December 2025. Thus, a new 8th pay commission will be implemented from 1 jan 2026. Apart from dearness allowance and other allowances, under the new pay commission change,s can also be seen in the fitment factor. This factor will be crucial in deciding the salary of central employees.
It is expected that the fitment factor can be kept at 2.86 by the new pay commission as demanded by the employee organization. If it happens the minimum salary of employees can jump to 51480 and the pension to 25740.
What is the fitment factor and its effect on salary?
The fitment factor is a coefficient through which employees’ new salary is calculated. This number is multiplied by your basic salary, and hence new salary will be determined. Due to the fitment factor, central employees’ salaries will increase by more than 2 and a half times.
Formula to calculate – new basic salary = old basic salary x fitment factor.
Thus small fitment factor keeps all the power to bring a huge change in the salary of employees
Basic salary expected to jump multiple times
In the 7th Pay Commission, the fitment factor was 2.57, due to which the salary of employees increased from 7000-18000. According to media reports, now the fitment factor is set at 2.86, which will increase central employee salaries by 40 to 50%.
For example, if the basic salary of an employee is 20k, then it can range from 46,699 to 57200. However, if the salary is 25k and the fitment factor is 2.86, it can jump to 71500 – great news for employees.
Increase in fitment factors from the 6th and 7th pay commission
When the 6th pay commission was implemented, there was a fitment factor of 1.86, which increased salary by 54%. At the same time, in the 7th Pay Commission, it increased the minimum salary by 14.2% with a fitment factor of 2.57.
This highlights that a higher fitment factor means a higher salary.
If a fitment factor of 2.86 is applied, there will not be a huge increase in the basic salary of central employees. However, when the fitment factor was changed in 2016, the 7th pay commission was also implemented, which also brought changes in Dearness allowances and others. Now we have to wait to see what the 8th pay commission will unfold.