8th Pay Commission Update: With a 4.0 fitment factor, the basic salary of Rs 18,000 will become Rs 72,000.

If the 4.0 fitment factor is implemented in the 8th Pay Commission, the current basic salary of ₹18,000 could become ₹72,000. You can see the complete calculations for the fitment factors, 3.83, and 4.0 here.

 

 

 

8th Pay Commission: Big update on 8th Pay Commission

The most debated issue among central employees and pensioners regarding the 8th Pay Commission is the fitment factor. If the fitment factor is set at 4.0, the current minimum basic salary could increase from ₹18,000 to ₹72,000. However, this cannot be considered a final decision yet, as neither the government nor the 8th Pay Commission has officially determined the fitment factor. This is simply a calculation based on the 4.0 fitment factor.

What is the fitment factor?
The fitment factor is the number by which the current basic pay is converted into the new pay structure. That is, the revised basic pay is estimated by multiplying the current basic salary by the fitment factor.

For example, if a central government employee's current basic salary is ₹18,000 and the fitment factor is set at 4.0, the basic salary of ₹18,000 will increase to ₹72,000. This is why the 4.0 fitment factor remains a significant topic of discussion among employees.

What will the basic salary be if the fitment factor is 3.83?
Not just 4.0, some employee organizations have also demanded a 3.83 fitment factor. If a 3.83 fitment factor is implemented, the current basic salary of ₹18,000 would become approximately ₹68,940.

What is the difference between 3.83 and 4.0?

  • 3.83 fitment factor – Rs 68,940 basic
  • 4.0 Fitment Factor – Rs 72,000 Basic

What was the fitment factor in the 7th Pay Commission?
The fitment factor is not a new concept. It was set at 2.57 in the 7th Pay Commission. Prior to that, it was 1.86 in the 6th Pay Commission. Now, the 8th Pay Commission is facing varying demands and estimates regarding the fitment factor. Some employee organizations have demanded a fitment factor of up to 4.0, while other proposals have even suggested a figure of 3.83.

Will only the basic salary increase, or will the entire salary also increase?
The fitment factor won't directly increase your full in-hand salary to Rs 72,000. Rs 72,000 is just the revised basic pay. After this, DA, HRA, and other allowances will be determined according to the government's new pay structure. Therefore, an employee's total salary and the amount received in hand may differ. The report also states that upon implementation of the new pay system, the existing DA and DR will be reset, and allowances will then be determined according to the new structure.