8th pay commission: Here’s how much salary hike a conservative fitment factor of 1.83 and 2 can give employees
A central government pensioners’ union have in the Chennai meeting with the 8th central pay commission (CPC) expressed demand for a 3.83 fitment factor. The All India Federation of Pensioners Association (AIFPA) was part of the consultation session this week, as per reports.
The commission is in its consultation stage, with plans to interact with employee and pensioner associations, federations, unions of central government, UT employees and other stakeholders across the country. To this end, dates are scheduled for state visits to Chandigarh and Bengaluru over the coming weeks.
During these meetings, the panel is examining desirable and feasible changes in the emoluments, including for pay (usually includes salary structure, fitment factor, pay matrix), allowances (usually include Dearness Allowance, Dearness Relief, HRA), and other facilities/benefits, in cash or kind (includes increment, promotions, etc.), besides other specialised needs.
The final recommendations are expected to benefit more than 1 crore individuals, comprising close to 50 lakh central government employees and about 65 lakh pensioners, including defence and railway personnel and retirees. Notably, central government employees and armed forces personnel account for about 0.7% of India’s 60-crore workforce and nearly 9% of the country’s formal sector.
Fitment factor: What is it? How is it calculated?
Fitment factor is a mathematical multiplier used by the pay commissions to convert an employee’s pre-revised basic salary (or retirees’ pension payout) into the new, revised basic salary structure. The primary formula used is: Current basic pay x fitment factor = New basic pay.
Thus, under the 7th CPC, where a fitment factor of 2.57 was implemented, basic pay for level 1 employees rose from ₹7,000 per month to ₹18,000 per month as follows: ₹7,000 x 2.57 = ₹18,000.
What fitment factor is expected from 8th CPC?
A number of central government employees and pensioners’ groups, unions, representatives and stakeholders have expressed demand for higher fitment factor from this pay commission.
The proposed fitment factor of 3.83 is the highest that could be approved, as per a Clear Tax report. Overall, conservative projections by experts are between 1.83-2.00, while moderate estimates from the industry range between 2.00-2.57, it added.
However, at this time, discussions on the 8th CPC are still ongoing, and the fitment factor has not yet been decided. Further, once the 8th CPC recommendations come, and the Centre will also have to approve the same before it is implemented.
Fitment factor 1.83 and 2.00: How much can pay increase?
Today, we calculate how much of salary hike the conservative fitment factor of 1.83 and 2.00 could provide central government beneficiaries (employees and pensioners). Check the calculations below:
| Pay Matrix Level | 7th CPC Basic Salary | 8th CPC estimate: 1.83 fitment factor | 8th CPC estimate: 2.00 fitment factor |
|---|---|---|---|
| Level 1 | ₹18,000 | ₹32,940 | ₹36,000 |
| Level 2 | ₹19,900 | ₹36,417 | ₹39,800 |
| Level 3 | ₹21,700 | ₹39,711 | ₹43,400 |
| Level 4 | ₹25,500 | ₹46,665 | ₹51,000 |
| Level 5 | ₹29,200 | ₹53,436 | ₹58,400 |
| Level 6 | ₹35,400 | ₹64,782 | ₹70,800 |
| Level 7 | ₹44,900 | ₹82,167 | ₹89,800 |
| Level 10 | ₹56,100 | ₹1,02,663 | ₹1,12,200 |
| Level 13 | ₹1,23,100 | ₹2,25,273 | ₹2,46,200 |
| Level 18 | ₹2,50,000 | ₹4,57,500 | ₹5,00,000 |
8th CPC: How much salary hike can be estimated?
Constituted every 10 years, the latest panel is expected to announce its decisions within 18 months of being formed (3 November 2025), by May 2027. It has sought inputs from labour representatives and groups, ministries, pension bodies, central government organisations / institutions, employee unions / associations, and other similar stakeholders. This data will be analysed and then used to decide pay, allowances, fitment factor, pension, and salary for central government employees and pensioners.
Overall, salary increases under the 8th CPC will depend on a combination of the proposed minimum pay, fitment factor and DA hike. At present, the likely increase is purely speculative as based on estimates by stakeholders and representatives.
- Conservative estimate is for a 20-30% salary hike,
- Moderate estimate is for a 30-50% salary hike, and
- High-end estimate takes into account highest recommended fitment factor, for an optimistic, over 80% salary hike in the 8th CPC.
