8th Pay Commission Gets Govt Nod: What Could Be The Expected Fitment Factor Determining Salaries Of Central Government Employees?

The Modi government last week gave the much needed cheers to lakhs of central government employees and pensioners, awaiting the formation of 8th Pay Commission. 

Union Minister Ashwini Vaishnaw confirmed on January 17 that the 8th Central Pay Commission has got PM Modi's approval. The formation of the 8th Central Pay Commission that will impact the salary brackets of approximately 49 lakh government employees and 68 lakh pensioners.

"Since 1947, seven Pay Commissions have been constituted, with the last one implemented in 2016. As the 7th Pay Commission's term concludes in 2026, initiating the process in 2025 ensures sufficient time to receive and review recommendations before its completion," Union Minister Ashwini Vaishnaw said.

Now that the government has decided to set up the 8th pay commission, it will require over a year or 18 months for its recommendations to be submitted. And once 8th Pay Commission recommendations are accepted by the government, it is most likely that it will be implemented by 2026, media reports have speculated.

Usually the recommendation of the pay commission over the salary hike of employees is based on fitment factor. Incase the 8th Pay Commission is set up for recommendations, it is most likely that the fitment factor will be set at 3.68 times. 

Now, considering  the minimum basic salary of government employees at Rs 18,000, they can expect a hike of Rs 8,000 to Rs 26,000 in their basic pay, if fitment factor of 3.68 times is placed upon.

Bringing huge relief for lakhs of Central Government employees, the implementation notification of the 7th Pay Commission was issued in July 2016, thereby paving the way for the employees to get the revised pay from their August salaries.

The Government after consideration decided to accept the recommendations of the Commission in respect of the categories of employees covered in its terms of reference of the Commission’s recommendations on Minimum Pay, Fitment Factor, Index of Rationalisation, Pay Matrices and general recommendations on pay without any material alteration with the following exceptions in Defence Pay Matrix in order to maintain parity in pay with Central Armed Police Forces.