8th Pay Commission: possible salary hikes if fitment factor is 2.57

All eyes are currently on the 8th Central Pay Commission when it comes to the salaries of central government employees. Lakhs of employees and pensioners are keen to know exactly how much their basic pay will rise once the new pay commission is implemented. The most discussed factor is the fitment factor, since the entire calculation of the new salary will depend on this figure. For now, taking a fitment factor of 2.57 as an assumption, some examples show the possible salary increases.

First, what exactly is the fitment factor. This factor is used to determine an employee's new basic pay based on their old basic pay when a new pay commission is implemented. In simple terms, the current basic pay is multiplied by a certain number, and this gives the new basic pay. It is being suggested that this factor could be 2.57 under the 8th Pay Commission, and if that happens, it is said the salary increase would be substantial. However, this figure of 2.57 is currently only an assumption; the final fitment factor has not yet been officially decided.

The current basic pay of a peon or MTS employee at Level-1 is 18,000 rupees. If the fitment factor of 2.57 is applied, 18,000 multiplied by 2.57 comes to 46,260 rupees. This would mean an increase of 28,260 rupees over the current basic pay of 18,000 rupees.

A similarly large jump could be seen in teachers' salaries. The current basic pay of teachers at Level-6 is 35,400 rupees. Multiplied by 2.57, this comes to 90,978 rupees, meaning the possible new basic pay for teachers could go up to nearly 91,000 rupees.

For officers, the current basic pay at Level-10 is 56,100 rupees. Applying the 2.57 fitment factor, 56,100 multiplied by 2.57 comes to 1,44,177 rupees. Under this assumption, the new basic pay for Level-10 officers could reach nearly 1.25 lakh rupees.

However, it should be kept in mind that the actual take-home salary is not decided by basic pay alone. Allowances such as Dearness Allowance, House Rent Allowance and Travel Allowance also play an important role in the total salary. So the actual amount received in hand could differ from the examples above once the new basic pay is decided. There is also a possibility that the rules for DA, HRA, TA and other allowances could change when the 8th Pay Commission is implemented. So the final salary cannot be stated with certainty right now based on the fitment factor alone.

This benefit would not be limited to employees currently in service; pensioners could also gain. For example, taking a minimum pension of 9,000 rupees and applying the 2.57 fitment factor, 9,000 multiplied by 2.57 comes to 23,130 rupees. Under this assumption, a pension of 9,000 rupees could rise to 23,130 rupees. However, all these figures are based on possible calculations. The final picture will only become clear once an official decision is made on the new pay scales, increments, allowances, DA and changes to pensions. The salary increase described here based on a 2.57 fitment factor is therefore an estimate and should not be taken as the final increase.