By Admin 
Ever since the announcement of the 8th Pay Commission, the discussion has intensified on the ‘Fitment Factor’ on the basis of the amendment in the salary and pension of the central government employees and pensioners.
According to reports, the fitment factor in the 8th Pay Commission can be between 1.92 and 2.86. Actually, the fitment factor is a multiplier, which the government uses to revise the salaries and pension of the employees. However, there is also a misconception about the fitment factor.
What is the real meaning of fitment factor?
It is a misconception that if the fitment factor in the 8th Pay Commission is 2.86, then the salary and pension will increase equally. Actually, the fitment factor applies only to the basic salary, not to gross salary.
Why does salary and pension increase not in proportion to fitment factor?
According to the report of Financial Express, the fitment factor does not show much effect on the gross salary, as many other components are also included in the total salary. While revising salary and pension, the pay panel takes into account many other aspects, such as merging DA with basic pay and adding or removing many allowances. This ensures that the calculation of the fitment factor will be applicable only to the basic pay.
Understand it in easy language that the fitment factor in the 7th Pay Commission was 2.57, which increased from Rs 7,000 to Rs 18,000. But, when it comes to the real increase, the salary and pension of the level 1-3 employees increased by an average of 15 percent. However, the employees of Level 4-10 got more increase.
At the same time, the fitment factor in the 6th Pay Commission was 1.86, but the salary and pension increased by 54 percent. It is clear that having high fitment factor does not mean that the total salary will increase equally.
Actual increment in previous pay commissions (percent)
Second Pay Commission: 14.2 percent
Third Pay Commission: 20.6 percent
Fourth Pay Commission: 27.6 percent
Fifth Pay Commission: 31.0 percent
Sixth Pay Commission: 54.0 percent
Seventh Pay Commission: 14.3 percent
When will the 8th Pay Commission be set up?
Now that the date of formation of the 8th Pay Commission is approaching, government employees and pensioners are expecting a good increment this time, so that they can live a “respectable and dignified life”. Let us tell you, the 8th Pay Commission is expected to be formally formed in April 2025.
Earlier, the employee side of the National Council of Joint Consultative Mechanism (NC-JCM) suggested that the terms and conditions of the new pay commission should also include review of retirement benefits like salary, allowances, other benefits, pension and gratuity in the terms and conditions of the new pay commission. Now it remains to be seen how much the 8th Pay Commission meets the expectations of government employees.
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