The Central Government is planning to set up the Eighth Central Pay Commission (8th CPC) in advance of the current pay structure’s expiry in December 2025. The move, eagerly awaited by millions of central government employees and pensioners, comes amid reports that appointments to the new commission are expected soon, with a possible revision in the fitment factor—crucial for salary and pension calculations.
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The government has initiated the process to fill 42 vacancies, including consultants and the post of chairman, for the 8th Pay Commission, which is expected to begin work from next month after the Terms of Reference (ToR) are finalised.
What Is the Fitment Factor?
The fitment factor is a formula used to calculate the revised basic salary of central government employees whenever a new pay commission is introduced. It helps standardize the salary hike when transitioning from the old pay structure to the new one.
In simple terms:
New Basic Pay = Old Basic Pay × Fitment Factor
Under the 7th Pay Commission, the fitment factor was set at 2.57. For example, if an employee’s basic pay was Rs 10,000 under the 6th Pay Commission, their new basic pay under the 7th Pay Commission would be:
Rs 10,000 × 2.57 = Rs 25,700.
What Could a Fitment Factor of 2.86 Mean for Employees?
Reports suggest that the 8th Pay Commission may use a fitment factor between 1.92 and 2.86. A fitment factor of 2.86 would mean a substantial increase in employees’ basic pay. For example, if an employee’s current basic pay is Rs 20,000, under the 8th Pay Commission with a fitment factor of 2.86, the new basic pay would be:
Rs 20,000 × 2.86 = Rs 57,200.
This would represent a significant salary boost compared to the previous pay commission.
Estimated Salary Structure Under the 7th and 8th Pay Commissions
To give an idea of how salaries could increase under the 8th Pay Commission, here’s a table comparing basic pay under the 7th Pay Commission (with a fitment factor of 2.57) and the estimated basic pay under the 8th Pay Commission (with a fitment factor of 2.86):
Old Basic Pay (6th CPC)7th CPC (2.57)8th CPC (2.86)8th CPC Demand (3.68)Rs 10,000Rs 25,700Rs 28,600Rs 36,800Rs 15,000Rs 38,550Rs 42,900Rs 55,200Rs 20,000Rs 51,400Rs 57,200Rs 73,600Rs 25,000Rs 64,250Rs 71,500Rs 92,000Rs 30,000Rs 77,100Rs 85,800Rs 1,10,400Rs 35,000Rs 89,950Rs 1,00,100Rs 1,28,800Rs 40,000Rs 1,02,800Rs 1,14,400Rs 1,47,200
What’s Next for Central Government Employees?
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