What would potentially become a game-changer for central government employees, speculations are rife around an increase of fitment factor under the 8th Pay Commission. If that approves, the basic pay of government employees has a considerable chance to have a significant increase-upwards from ₹18,000 to ₹26,000. Such an expected increase has thrown great interest and expectation among over 50 lakh Central Government employees and nearly 60 lakh pensioners.
What Is Fitment Factor?
The fitment factor is one of the critical multiplier computations to revise the basic salary and pension under Central Pay Commissions. This factor decides how much an employee’s pay gets increased after the implementation of any pay commission. The fitment factor is 2.57x at the moment, and this means an employee’s basic salary multiplied by this fitment factor gives the total pay.
Proposal For Increasing It To 3.68x
The proposed increase of the fitment factor from 2.57x to 3.68x is said to have been discussed in connection with the 8th Pay Commission reform. Consequently, a remarkable increase in the minimum basic pay is thought to rise from ₹18,000 to ₹26,000. This accounts for a considerable enhancement of ₹8,000 in base salary parameters, excluding allowances-at least DA, HRA, and TA, would only enlarge the enhancement of these take-home salaries.
Why The Sudden Buzz?
The renewed discourse around the fitment factor is happening at a time when employee unions have been vociferously demanding change, while inflation has made it an urgent matter on which to act. With inflation squeezing household budgets, several states have already increased salaries/pay, affording a sense of hope to central employees for timely intervention.
Adding on to the earlier modifications to implement a 12% Dearness Allowance (DA hike), the new government suddenly finds itself in the spotlight. The pay review under the 8th Pay Commission would require changes by 2026 but may eventually be declared earlier.
The Pension And Benefits Impact
Changing the fitment factor will help serving employees and will also increase the pensions of the retirees since the pension is directly calculated based on the last drawn basic pay. This is expected to bring some reprieve to lakhs of pensioners across the country.
Conclusion
Till now, there has been no official confirmation. Nevertheless, the movement around recommendation for Fitment Factor being hiked and basic pay leap to ₹26,000 is fast gaining momentum. Central Government workers and pensioners equally await the pressing announcement that will bring noteworthy relief in finances and elevation in life.
Also Read : Dearness Allowance Hike 2025: Big Update For Government Employees