Government employees in India have been eagerly waiting for the recommendations of the 8th Pay Commission, which will determine their new salaries and perks. Fitment factor is one of the most important points of consideration multiplier that is being discussed to compute the new basic pay.
Various sources have claimed that the fitment factor would likely be fixed at 1.90, which would lead to a massive salary increase for central government employees. But how does that impact their take-home salary? Let us know about it now.
What Fitment Factor Means and Why 1.90 is Expected?
Fitment factor is an operative term associated with salary revision in pay commissions. It indicates how an increase in basic pay is computed while shifting from the old to the new pay structure.
- Factors Influencing The Fitment Factor: Current Dearness Allowance: As of now, the DA is 55%, but experts predict it can rise to anything up to 61% by January 2026.
- Inflation and Economic Conditions: Inflation historically impacts salary increases, so employees’ purchasing power is safeguarded.
- Historical Trends: The pay commissions have handed out increases averaging 27%, with the 7th Pay Commission recommending a 14.27% hike.
Analysts are convinced that, on a probability factor, these reasons suggest the fitment factor could be set at around 1.90-an 18% increase in pay. Some say an increase may go up to 24%, but this probability remains low, with the increase limited due to the budget.
How Will the 1.90 Fitment Factor Impact Salaries?
If the fitment factor is set at 1.90, the new basic salary will be calculated as:
New Basic Salary = Current Basic Pay × 1.90
Example Calculation:
- Current Basic Pay (7th CPC): ₹25,000
- Revised Basic Pay (8th CPC): ₹25,000 × 1.90 = ₹47,500
This adjustment will lead to a substantial increase in gross salary, including allowances like HRA and DA.
Effectuation Dates of 8th Pay Commission?
It is anticipated that the 8th Pay Commission will come into implementation by January 1, 2026; however, it will take a little longer for the final recommendations to come by. Likely to happen thus:
- Interim Report: Expected by May 2026
- Final Implementation: Possibly by mid-2027
- Arrears: Employees are to be paid arrears from January 2026 after the commission’s report has got the nod.
The 8th Pay Commission: Will It Change the Formula for DA Calculation?
Indications are strong that the base year of DA calculations will change from years 2016 to 2026. The phase is intended to account for changes in trends of current inflation as well as to provide’S to deliver a better revolution.
Possible Revisions in DA:
- The current DA of 61 percent may well be merged in the basic pay.
- Attaining the DA formula may be introduced newly, resetting the allowance to zero initially.
But the changes have yet to be confirmed by the government.