8th pay commission: Fitment factor may be linked to 60% DA if the 7th CPC formula stays

As of now, it is not certain whether the 8th CPC will repeat the fitment factor-based approach of the 7th Pay Commission for determining revised salaries. However, if the 8th CPC continues with the same formula, then the dearness allowance at 60% could serve as the base for fitment factor calculation.

The 7th Pay Commission had taken the DA rate as on January 1, 2016, as the base for calculating fitment. Going by the 7th CPC norm, the January DA rate should be considered for calculating the fitment factor.

Here's how it was done:

The 7th CPC had set ₹18,000 as the starting point for the first level of the new pay matrix. This corresponded to the starting pay of ₹7,000, which was the beginning of Pay Band-1 (₹5,200 + Grade Pay 1800) prevailing on 01.01.2006, the date of implementation of the 6th CPC recommendations. Hence, the starting point proposed by the 7th CPC was 2.57 times what was prevailing on 01.01.2006.

Further, the 7th CPC had recommended applying this fitment factor of 2.57 uniformly for all employees.

The fitment factor of 2.57 included a factor of 2.25 on account of dearness allowance neutralisation, assuming that the rate of DA would be 125% at the time of implementation of the new pay from January 1, 2016.

The 7th CPC was implemented with effect from January 1, 2016. While deciding the fitment factor, it had assumed that the rate of DA on January 1, 2016, would be 125% of the basic pay. If the same approach continues in the 8th CPC, the 60% DA could serve as the base for calculating the new fitment.