8th Pay Commission salary hike: How much will your basic pay increase? Explained with three different fitment factors

8th Pay Commission Salary Hike: The 8th Pay Commission is deliberating on how much salaries of government employees and pensioners will increase. Central government employees are eagerly waiting for an update on their salary hike. In this situation, knowing about the fitment factor assumes significance.

The fitment factor is the multiplier the new CPC uses to calculate the new basic pay. The 8th Pay Commission will take into account several factors, including inflation, to determine the fitment factor.

Why is fitment factor important?

Fitment factor is used to revise salaries, pensions, and allowances of government employees. It is an essential multiplier that sets the levels for salaries and pensions for government employees. Fitment factor is determined by considering various factors such as inflation, employee needs, and the government's financial capacity.

How does fitment factor affect your salary?

The salary structure for central employees is currently based on the 7th Pay Commission's fitment factor, introduced in 2016. The Commission used a fitment factor of 2.57. However, this doesn't mean salaries increased 2.57 times; instead, this factor was added to the basic pay, increasing it to at least ₹18,000.

Meanwhile, the dearness allowance is reset to zero at the start of each new Commission because the base index is recalculated. Hence, the real salary increase under the 7th Pay Commission was 14.3%, Mint had reported earlier.

What are the 18 levels of government employees?

Level 1: Entry-level / Group D employees

Levels 2–9: Group C employees

Levels 10–12: Group B employees

Levels 13–18: Group A employees

Group A employees include top-level government officials, including Cabinet secretaries.

How is fitment factor calculated?

An important factor in determining the 8th Pay Commission salary hike is the fitment factor, which dictates how much overall pay will increase. However, since months, unverified reports about fitment factor hike are circulating online.

Government employees are advised to wait for an official notification to get an update about the fitment factor.

8th Pay Commission salary hike will be calculated using the following formula —

Revised Basic Pay = Current Basic Pay x Fitment Factor

Under the 7th pay commission, the basic salaries were:

Level 1: ₹18,000

Level 5: ₹29,200

Level 10: ₹56,100

Level 15: ₹1,82,200

Level 18: ₹2,50,000

While there has been no official confirmation on the fitment factor, here are three scenarios for the same and how your salary will look like.

What will be the revised basic pay if fitment factor is 2.57?

What will be the revised basic pay if fitment factor is 3.0?

What will be the revised basic pay if fitment factor is 3.25?

8th Pay Commission: What does a government employee's salary consist of?

A government employee's salary includes basic pay, dearness allowance (DA), house rent allowance (HRA), and transport allowance. The basic salary makes up 51.5% of the total income, while DA accounts for about 30.9%, HRA for roughly 15.4%, and transportation allowance for approximately 2.2%.