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  1. 8th Pay Commission: What is the fitment factor and how has it evolved over 6th and 7th CPC?

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8th Pay Commission: What is the fitment factor and how has it evolved over 6th and 7th CPC?

Upstox

3 min read | Updated on January 21, 2025, 15:49 IST

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SUMMARY

8th Pay Commission fitment factor news: The fitment factor is a multiplier applied to calculate the revised salaries and pensions for central government employees based on recommendations of the pay commission. The new fitment factor will be known only after the announcement of the 8th CPC recommendations.

8th pay commission fitment factor news

The fitment factor is a multiplier applied to calculate the revised salaries. Representational image

8th Pay Commission salary news: Since the announcement of the 8th Central Pay Commission (CPC), several speculations about the expected fitment factor have been circulating on social media.

However, the exact fitment factor will be known only after the submission of recommendations by the 8th pay commission, which may take several months.

The Union Government sets up the pay commission to recommend ways to revise the salaries and allowances of central government employees. Typically, a new pay commission is set up after 10 years.

As the tenure of the current pay commission, i.e. the 7th CPC, is expiring on December 31, 2025, the government has announced a new pay panel to be set up in 2026.

While central government employees are hoping for a good hike in their take-home pay, this article explains what the fitment factor means and how it has evolved over the past two pay commissions.

What is the fitment factor?

The fitment factor is a multiplier applied to calculate the revised salaries and pensions for central government employees based on recommendations of the pay commission.

Understanding the fitment factor can assist both aspiring and current central government employees in calculating their salaries.

How the fitment factor has evolved

The fitment recommended by the 6th pay commission was in the form of grade pay. In this system, any inconsistency in the computation of grade pay or the spacing between pay bands directly affects the amount of benefits to an employee, according to the report of the 7th CPC.

The 7th pay commission improved on the shortcomings of the grade-based fitment by recommending a uniform fitment factor that can be applied to all employees. It proposed a uniform fitment factor of 2.57. Let’s understand how it impacted minimum salaries:

The starting salary in the sixth pay commission was ₹7000, applicable for entry-level central government employees in Pay Band-1 (₹5200+GP1800).

The 7th CPC recommended to multiply the minimum salary of ₹7000 by a fitment factor of 2.57. Therefore, the starting salary as per the 7th CPC became ₹18,000 (2.57*7000.

When will you know the new fitment factor?

The new fitment factor will be known only after the announcement of the 8th CPC recommendations. Going by the past, it may take several months or even 1-2 years for actual implementation of the recommendations. For instance, the government had constituted the 7th pay commission on 28th February 2014 but its recommendations were implemented in 2016.

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