8th Pay Commission: How salaries change at fitment factors of 4, 3.833 and 3.80; Check complete calculations
The 8th Pay Commission recently successfully concluded its Bengaluru meeting on 8 October. Now the commission is gearing up for its key consultative meeting in Mumbai starting on 22 October. The commission is currently primarily focused on reviewing proposed changes to the salaries, allowances, fitment factors, and pensions of central government employees and pensioners.
One of the most important issues under consideration of the 8th Pay Commission is the fitment factor. In earlier commissions, the multiplier was 1.86 and 2.57 for the 6th and 7th Pay Commissions, respectively. This is a very important metric as it is used to calculate the revised basic pay from the existing basic salary.
The 8th Pay Commission, chaired by former Supreme Court Justice Ranjana Prakash Desai, is currently consulting employee unions, pensioner associations, and other stakeholders before making its recommendations. The final report of the 3-member panel is due within 18 months of its constitution on 3 November 2025. This puts the expected deadline tentatively around May-June 2027.
The fitment factor is a multiplier used to calculate revised basic pay under a new pay commission. The formula is:
Under the 7th Pay Commission, a fitment factor of 2.57 was applied to the existing basic pay. For instance, the minimum basic pay rose from ₹7,000 to ₹18,000, with the calculation rounded to ₹18,000.
The fitment factor recommended by the 8th Pay Commission has not yet been finalised. The final salary structure will depend on the commission's recommendations and the Centre's approval and adoption, depending on fiscal constraints and economic considerations.
Different employee and pensioner organisations have proposed different fitment factors for the 8th Pay Commission. These have been done while giving due consideration to rising inflation and the challenges faced by central government employees and pensioners. The objective of the unions is to ensure that salaries and pensions of employees are improved in a meaningful way, so that they are able to deal with rising costs and manage day-to-day expenses better.
The Bharatiya Pratiraksha Mazdoor Sangh (BPMS) has, for example, sought a factor of 4.0 and minimum basic pay of ₹72,000. The National Council of Joint Consultative Machinery (NC-JCM) has proposed a factor of 3.833, corresponding to a minimum basic pay of ₹69,000. Meanwhile, the Maharashtra Old Pension Organisation has sought a fitment factor of 3.8 and minimum basic pay of ₹65,000. It is important to keep in mind that these are proposals, not currently approved salary revisions.
Keeping these basics in view, let us calculate how the salaries of serving employees will be improved if the fitment factors are submitted by the 8th Pay Commission panel and eventually adopted officially by the central government.
The table below estimates revised basic pay at selected levels of the existing 7th Pay Commission pay matrix, using the three proposed multipliers.
|
Pay matrix level |
Existing basic pay |
At presumed 4.0x multiplier |
At presumed 3.833x multiplier |
At presumed 3.80x multiplier |
|---|---|---|---|---|
| Level 1 | ₹18,000 | ₹72,000 | ₹68,994 | ₹68,400 |
| Level 2 | ₹19,900 | ₹79,600 | ₹76,277 | ₹75,620 |
| Level 3 | ₹21,700 | ₹86,800 | ₹83,176 | ₹82,460 |
| Level 4 | ₹25,500 | ₹1,02,000 | ₹97,742 | ₹96,900 |
| Level 5 | ₹29,200 | ₹1,16,800 | ₹1,11,924 | ₹1,10,960 |
| Level 6 | ₹35,400 | ₹1,41,600 | ₹1,35,688 | ₹1,34,520 |
| Level 7 | ₹44,900 | ₹1,79,600 | ₹1,72,102 | ₹1,70,620 |
| Level 10 | ₹56,100 | ₹2,24,400 | ₹2,15,031 | ₹2,13,180 |
| Level 13 | ₹1,23,100 | ₹4,92,400 | ₹4,71,842 | ₹4,67,780 |
| Level 18 | ₹2,50,000 | ₹10,00,000 | ₹9,58,250 | ₹9,50,000 |
Source: Calculations based on the existing 7th Pay Commission basic pay multiplied by the respective presumed fitment factors. Figures are rounded to the nearest rupee.
Therefore, these estimates represent revised basic pay, not the final monthly salaries or take-home pay. It is vital to remember that the actual outcome will depend on the 8th Pay Commission recommendations and the treatment of existing Dearness Allowance (DA), revised allowances, associated changes and the Centre’s eventual approval.
In summary, for now, these are just proposals. The 8th Pay Commission’s final report is expected to be tabled by May-June 2027, based on the 18-month timeline provided to the 8th Pay Commission panel as per the Terms of Reference (ToR). Till the time the recommendations are finalised and officially approved, all three fitment factors remain proposals rather than confirmed salary increases.
Shivam writes on personal finance, equity markets, and mutual funds. He has previously contributed to several leading publications, including Moneycontrol. He can be reached at shivam.shukla@htdigital.in
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HomeMoneyPersonal Finance8th Pay Commission: How salaries change at fitment factors of 4, 3.833 and 3.80; Check complete calculations
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