Personal Finance News
3 min read | Updated on January 21, 2025, 15:49 IST
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.
The fitment factor is a multiplier applied to calculate the revised salaries. Representational image
However, the exact fitment factor will be known only after the submission of recommendations by the 8th pay commission, which may take several months.
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.
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.
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.
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