The Lucknow meetings of the 8th Pay Commission concluded on Tuesday, and central government employees and pensioners are now awaiting for the next round of consultations in Bhubaneswar and Kolkata in July.
The sooner the submits its report and the government gives its approval, the earlier these employees and pensioners can expect revised salaries and pensions.
Meanwhile, employee unions reiterated their demand for a higher fitment factor, with the Bharatiya Pratiraksha Mazdoor Sangh (BPMS) seeking a multiplier of 4.0, while the National Council (JCM) Staff Side and the All India Defence Employees Federation (AIDEF) have each demanded a fitment factor of 3.833.
What is fitment factor?
The size of the salary and pension hike will depend on the fitment factor, which is the multiplier used to revise pay and pensions under a new Pay Commission. While there is a lot of speculation over what the 8th Pay Commission may recommend, estimates vary widely.
Some experts believe the could exceed 2.57, the multiplier adopted by the 7th Pay Commission, while others argue that, given the current economic and fiscal environment, it is likely to be capped at around 2.0.
However as of now, the actual fitment remains unknown and it will be officially announced only after the government approves it. According to experts who spoke to The Economic Times, their calculations show that the fitment factor could be in the range of 2.05 to 2.10.
What experts are saying
Manjeet Singh Patel, National President of the All India Employees Federation (AINPS), told ET that if the dearness allowance (DA), house rent allowance (HRA) and transport allowance (TA) prevailing as of December 31, 2026, are taken into account, the fitment factor could rise to 2.1 even without incorporating any growth component.
Patel’s second scenario suggests that the fitment factor could easily rise to 2.05, excluding any growth factor if the government agrees to the recommendation of employee and pensioner bodies to increase the family unit count for calculating the fitment factor from 3 to 4.4.
A growth factor is essentially the component that a pay commission may provide to central government employees to raise their standard of living as per the parameters defined by the United Nations’ Human Development Index.
Scenario 1: How Patel arrives at a 2.1 fitment factor
Patel illustrated his first scenario using the example of a Level 1 central government employee posted in a X-category city:
Salary as on December 31, 2025 (under the 7th Pay Commission):
| Component | Amount |
|---|---|
| Basic pay | ₹18,000 |
| Dearness Allowance (58%) | ₹10,800 |
| House Rent Allowance (30%) | ₹5,400 |
| Transport Allowance | ₹2,880 ( ₹1,800 + 58% DA of ₹1,080) |
| Gross pay | ₹37,080 |
Fitment factor= ₹37,080/18,000= 2.06
Patel said that if the government rounds it to the nearest single decimal place, the fitment factor could be 2.1.
He assumes a 2% DA hike and a higher HRA rate for X-category cities under the 8th Pay Commission.
| Component | Amount |
|---|---|
| Basic pay ( ₹18,000 × 2.1) | ₹37,800 |
| Dearness Allowance (2%) | ₹756 |
| House Rent Allowance (36%) | ₹13,608 |
| Transport Allowance | ₹9,180 (assuming revised TPTA of ₹9,000 + 2% DA) |
| Gross salary | ₹61,344 |
Overall hike in salary= 65%
Expert presents a second scenario for a 2.10 fitment factor
Patel’s second fitment factor calculation is based on the number of family units. Under the 7th Pay Commission, the family unit count was 3.0, comprising:
- Employee – 1.0
- Spouse – 0.8
- First child – 0.6
- Second child – 0.6
Patel says if the government also takes parents as 1.2 units (0.6+0.6) in the 8th Pay Commission, the family unit count will increase to 4.2 (3.0+1.2).
A 4.2 family unit means a 46.66% increase from 3.0 family units.
If 46.66% is added to 158% (100% basic salary+58% DA as on December 31, 2025), it will be 205% or a 2.05 fitment factor.
If the government considers the nearest single point after decimal, a 2.05 fitment factor can be 2.10, he told the news publication.