8th Pay
Commission Salary and Fitment Factor – Latest News
1. 8th Pay Commission Pay Matrix and Fitment Factor
The Fitment Factor plays a significant role as it serves as the formula to determine salaries and the Pay Matrix under the 8th Pay Commission. It is utilized to revise the existing 7th CPC Pay Scale to align with the 8th CPC Pay Scale.
In the 7th Pay Commission, a uniform multiplication factor of 2.57 was used to revise the Sixth CPC pay into the 7th CPC pay. Additionally, a new Pay Matrix was introduced to simplify pay fixation calculations during promotions and annual increments.
2. How Can the Fitment Factor of the 8th Pay Commission Be Arrived At?
The Fitment Factor under the 8th CPC is primarily determined by two factors:
- Minimum Pay
- Rate of Dearness Allowance (DA)
The effective date of the 8th Pay Commission's recommendations is set for 1st January 2026. Before implementing the revised pay scale under the new pay commission, the DA rate up to this date will be neutralized. Once neutralized, the DA rate is integrated with the current Basic Pay to arrive at the new pay structure.
3. How Was the 7th CPC Fitment Factor Calculated?
To understand the Fitment Factor for the 8th CPC, it's helpful to look back at the 7th CPC calculation:
· The DA percentage in January 2016 was 125%.
·
This means that the total pay for ₹100 Basic Pay
was calculated as:
Basic Pay + DA = 100 + 125 = 225.
·
The Fitment Factor was calculated as:
225 ÷ 100 = 2.25
·
The Pay Commission further increased the salary
by 14.3%, which equates to:
14.3% of 2.25 = 0.32
·
Adding the two together:
2.25 + 0.32 = 2.57
Thus, the Fitment Factor for the 7th CPC was finalized at 2.57.
4. Estimating the Fitment Factor for the 8th CPC
Using a similar methodology, the Fitment Factor for the 8th CPC can be estimated based on the projected DA rates in January 2026:
· DA Rate Projections:
- July 2024: 53%
- January 2025: 56% (Confirmed, +3%)
- July 2025: 59% (Assumed, +3%)
- January 2026: 63% (Assumed, +4%)
·
If the DA in January 2026
is 63%, the Fitment Factor can be calculated as:
(100 + 63) ÷ 100 = 163 ÷ 100 = 1.63
·
Assuming the Pay Commission increases salaries by
20% (compared to 14.3% in the 7th CPC), this
would add:
20% of 1.63 = 0.32
·
Adding these values together gives:
1.63 + 0.32 = 1.95
5. Potential Impact of the 8th CPC Fitment Factor
If the Fitment Factor for the 8th CPC is 1.95, the Basic Pay and Pension calculations will significantly increase.
- For
instance, if an individual’s current
Basic Pension is ₹39,700, their revised Basic Pension
after the 8th CPC implementation would be:
39,700 × 1.95 = ₹77,415/-
