8th pay commission: What is fitment factor? We calculate salary hike for multipliers of 1.83, 2, 2.57 and 3.83

The 8th central pay commission (CPC) is in its consultation stage and has scheduled meetings in Mumbai later this month, in order to hold discussions with employee unions, representatives, groups, pensioner associations, federations, and other stakeholders, before releasing its official recommendations.

The panel is expected to examine and recommend changes that are desirable and feasible in the emoluments, including pay (usually includes salary structure, pay matrix, fitment factor), allowances (usually include DA, DR, HRA), other facilities / benefits, in cash or kind (includes increment, promotions, etc.).

All central government employees and retired former servicemen are impacted by the revisions. Overall, the recommendations are set to benefit over 1 crore people, including near 50 lakh central government employees and some 65 lakh pensioners, including personnel and retirees with the defence and railway ministries.

What is fitment factor? How is it calculated?

Fitment factor is a mathematical multiplier used by the pay commissions to convert an employee's pre-revised basic salary (or retirees' pension payout) into the new, revised basic salary structure. The primary formula used is as below:

Current basic pay x fitment factor = New basic pay.

Thus, under the 7th CPC, where a fitment factor of 2.57 was implemented, basic pay rose from ₹7,000 to ₹18,000 as follows: ₹7,000 x 2.57 = ₹18,000.

How much fitment factor can be expected?