With the 8th Pay Commission announcement on the horizon, anticipation is building across the country particularly among government employees who are eagerly awaiting updates on potential salary hikes. At the heart of the discussion is the fitment factor, the crucial multiplier used to revise pay structures across various levels.
This factor plays a key role in determining how much a government employee’s basic pay will increase. According to multiple reports, the fitment factor under the 8th Pay Commission is expected to fall between 1.92x and 2.86x.
If your current basic pay is ₹18,000, here’s a detailed look at how your salary could change under 3 possible fitment factor scenarios—1.92x, 2.0x, and 2.86x—based on ongoing discussions and historical precedents.
For reference, the 7th Pay Commission had adopted a fitment factor of 2.57, which increased the minimum basic salary from ₹7,000 to ₹18,000 a substantial 2.57x jump.
One major point of debate is whether Dearness Allowance (DA) will be merged with the basic pay before the new pay structure is implemented.
Currently, DA stands at 55% after a recent hike. If the same approach as previous pay commissions is followed where DA is merged into basic before applying the fitment factor, the final revised pay could be much higher, even with a smaller multiplier.
However, news reports suggest that a DA merger might result in a lower fitment factor (like 1.92), as some of the increment would already be absorbed by the merged DA component.
Read More: 8th Pay Commission: Why Higher Fitment Factor Doesn’t Guarantee a Bigger Salary Hike.
The upcoming 8th Pay Commission brings a wave of anticipation and hope for government employees eager to see their salaries rise. While the exact fitment factor remains uncertain, scenarios ranging from a conservative 1.92x to an optimistic 2.86x illustrate the potential scale of salary revisions.
Alongside this, the treatment of Dearness Allowance whether it will be merged with the basic pay or kept separate will significantly impact the final take-home amount.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: May 19, 2025, 4:48 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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