8th Pay Commission: Level 1 and Level 10 salaries compared under 2.1, 2.5 and 3.0 fitment factors
The 8th Pay Commission completed its meeting in Kokalata on 10 July. The discussions held during this visit provided a platform for concerned stakeholders, organisations, associations and unions to present their views and grievances to the Commission.
The 8th Pay Commission will hold more meetings across the country and consider all views before recommending revisions to salaries, allowances, pensions and a new fitment factor.
The fitment factor is one of the most important variables determining eventual salaries and allowances. It will have a major impact on salary hikes, as it is the multiplier used to revise an employee’s basic pay. The higher the multiplier, the higher the revised basic pay and consequently the overall salary.
The Centre has yet to announce the fitment factor and has also not provided any specific range for this metric.
How do different fitment factors affect basic pay across various pay levels?
Adhil Shetty, CEO, Bankbazaar, explains the implications of different fitment factors for salaries across various pay levels. He says, “The impact of the fitment factor varies across pay levels, making it useful to look at multiple scenarios rather than focusing on a single estimate. For instance, a Level 1 employee’s revised basic pay could increase from the current ₹18,000 to ₹37,800 under a 2.1 fitment factor, ₹45,000 under 2.5 and ₹54,000 under 3.0.”
He added, “Similarly, a Level 10 employee’s revised basic pay could increase from ₹56,100 to ₹1.18 lakh, ₹1.40 lakh and ₹1.68 lakh across the three scenarios. Looking at these outcomes side by side gives employees a clearer picture of how different fitment factors could affect salaries across the pay matrix and helps them set realistic expectations while the commission’s recommendations are still under consideration.”
Note: The above-discussed fitment factors are illustrative in nature. The government will finalize the fitment factor only after the 8th Pay Commission submits its recommendations to the Centre.
Why do fitment factors matter?
The fitment factor determines the revised basic payments, and its impact on individual salaries extends beyond just basic pay revisions. As several other salary components, including Dearness Allowance (DA), House Rent Allowance (HRA), Transport Allowance (TA) and a host of other similar factors, are directly linked to an employee’s basic pay, a higher fitment factor can eventually result in a proportionally higher overall salary package.
A higher salary naturally boosts employee confidence and the working environment in the government. This is how significant the fitment is for both serving and retired employees, as any eventual pension revisions will also be done if the 8th Pay Commission recommends a higher fitment factor.
For more updates and recent developments, visit the official website of the 8th Pay Commission at: https://8cpc.gov.in/
