Fitment Factor Hike Latest Update: Central government employees and pensioners have long been waiting for a pay hike since the Eighth Pay Commission was given the nod. Fresh reports state that the fitment factor may be set at 1.92, thereby increasing the basic salary of the employees by 92 percent.
The 8th Pay Commission was approved by the Modi government at the Center in January 2025, which set off speculations as to how much the fitment factor will be raised and how much will the salary get increased. To be precise, the employees’ organization National Council-Joint Consultative Machinery (JCM-NC) had requested an increase in the fitment factor to at least 2.57 or more so that government employees can get a decent salary. Now, there is a great anticipation from the side of the employees as to when the same will be approved by the government.
How Much Will The Salary Increase If The Fitment Factor Is 2.57
When talking about the announcement for the 8th Pay Commission, JCM-NC Secretary Shiv Gopal Mishra also mentioned that the fitment factor had to be equal to or more than 2.57. Similar to the 7th Pay Commission stipulations, so much so that after the implementation of the 7th Pay Commission, the fitment factor has been made 2.57. Therefore, if fixed at 2.57, the minimum basic salary of central employees will progressively increase because of the increase in the fitment factor by 157 percent.
Currently, government employees have a qualifying minimum basic salary of Rs 18,000 per month (Basic Salary Hike update), which may increase to Rs 46,260 per month. On the other hand, the minimum pension paid to pensioners will shoot up from Rs 9,000 to Rs 23,130 monthly.
Will Fitment Factor Be 1.92?
The fitment factor of 2.86 will be stated high, according to the former finance secretary Subhash Garg. The demand of Central employees is a fitment factor of 2.86. He further added that the government will not go till this much in raising the fitment factor. Thus, the government can enhance the fitment factor by 1.92. Bringing the fitment factor to 1.92 will increase the minimum basic salary of government employees from Rs 18,000 to Rs 34,560. By this, the salaries of the employees would increase by 92 percent.
Why Are Employees Demanding A Fitment Factor Of 2.57?
As put forth by the National Council-Joint Consultative Machinery (JCM-NC), the decision of the 7th Pay Commission was based on the 15th Indian Labor Conference held in 1957 along with Dr. Aykroyd’s minimum living wage formula. But in view of the today’s inflation and expenses, it has no relevance. The 7th Pay Commission had determined the consumption standard of 3 units to evaluate the need-based salary. However, the 8th Pay Commission should recommend it as 5 units. So that dependent parents can also be included. Mishra said that in view of the increase in internet cost, higher education, health, and digital services, the fitment factor should be taken as 2.57 or above.
When Will The 8th Pay Commission Come Into Existence?
The 7th Pay Commission was formed in the year 2014, with its recommendations applying from the year 2016. The Indian government constituted a Pay Commission after every 10 years; thus, the tenure of the 7th Pay Commission comes to an end in the last month of this year. It is expected that the new 8th Pay Commission will become applicable from January 1, 2026. According to some media reports, however, there may be a delay in this. On January 16, 2025, the Union Cabinet under the chairmanship of Prime Minister Narendra Modi approved the 8th Pay Commission; however, neither the name of its chairman nor its members has been announced.
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