Discussions regarding the 8th Pay Commission have intensified, and every government employee has only one question in his mind – how much will the salary increase? The answer lies in a small number called Fitment Factor. This decides how much the old basic salary will be increased. The fitment factor in the 7th Pay Commission was 2.57, due to which the basic of ₹10,000 increased to ₹25,700. Now if the 8th Pay Commission talks about increasing the minimum wage from ₹ 18,000 to ₹ 30,000, then the Fitment Factor becomes 1.67 – i.e. an increase of about 67%. But the government doesn’t just look at inflation — it also assesses how the hike will affect government spending, fiscal balance and GDP. This is why experts believe that the Fitment Factor can be between 1.6 to 1.8 – meaning a salary increase of 60% to 80% is possible! Now eyes are on the next step of the government, when ToR (Terms of Reference) of 8th Pay Commission will be released. Only then will it be decided how much happiness will come into the pockets of the employees.
8th Pay Commission: How much will the salary increase? Know the whole game of Fitment Factor. Money Live | 8th Pay Commission: How much will your salary increase be? Learn the full game of the Fitment Factor.
