The 8th Central Pay Commission (CPC) is going to create a remarkable change in the salary structure for the central government servants of India. One of the key highlights of this pay revision is the Fitment Factor, which is the basis on which new basic pay under the CPC would be determined. Recent estimates indicate that the employees will get around an 18% pay increase with about 61% of the Dearness Allowance (DA).
What Is the Fitment Factor?
The Fitment Factor is a ratio used to convert the previous base salary of government employees to a new structure payable under the newly established Central Pay Commission. This ensures that not only all pay bands get a proportionate increase but also serves a crucial part in defining the new scales of pay.
In the 7th CPC, the Fitment Factor was 2.57 and raised the base salary from a minimum of ₹7,000 to ₹18,000. The same course will be followed, but under a newly revised factor that would foresee a very large amount of revision at the basic-pay level.
Expected Fitment Factor in 8th CPC
However, while the government is yet to make the figures official, economists and government sources have begun indicating that the Fitment Factor is likely to be between 2.28 under the 8th CPC. This estimate bases on the trends of inflation currently, patterns with which pay commissions have gone in the past, and the anticipated Dearness Allowance, which should be around 70% by January 2026.
The increase in minimum pay revised has, hence, been factored for the computation of the 8th CPC Fitment Factor, which is likely to go up by about 34.1%, as projected currently. This makes 2.28 a practical estimate for salary revisions at all employment levels.
How the Fitment Factor Affects Your Salary
To arrive at the modified salary under the 8th CPC, this simple formula is applied:
Revised Basic Pay = Current Basic Pay × Fitment Factor
So, if you take an employee with an initial basic pay of ₹20,000, the new pay will be:
₹20,000 × 2.28 = ₹45,600
This implies a very effective increase of 18% in the total salary after including and deducting allowances.
Dearness Allowance to Reach 61%
Dearness Allowance is the portion given to government employees as a safeguard against inflation. Typically, it is revised twice a year depending on the Consumer Price Index for Industrial Workers (CPI-IW). Presently, it is 50 percent and will be reviewed for revision in July 2025.
In case the inflation trends continue, then by the time the recommendations of the 8th CPC come into effect, around January 2026, the DA is expected to touch as high as 61 percent. This increase will play a vital role in further increasing the take-home pay of the employees.
Pensioners and other benefits will be impacted.
The increased Fitment Factor and DA will also benefit retired central government Group-A officers (pensioners). Their pensions, which are based on the last drawn basic pay and applicable DA, will therefore be revised to secure better financial conditions for them after retirement.
Besides, allowances pertaining to House Rent Allowance (HRA), Travel Allowance (TA), and Medical Allowance will also be anticipated to be revised along with the Fitment Factor, thereby providing further financial benefits to employees and pensioners alike.
Implementation of the 8th CPC?
The 8th CPC is expected to be implemented on January 1, 2026. Modifications and formation of committees are likely to be initiated in July to December 2025. The government usually announces a pay commission anywhere between 18 to 24 months in advance, which allows time for its recommendations and review.
Conclusion
The 8th Central Pay Commission will enter the allegedly major revision for around 50 lakh central government employees and 65 lakh pensioners. With the estimated Fitment Factor of 2.28, and with DA likely to be 61% on the other side of the commission, there could be a much-need-breath for survival amidst increasing inflation and soaring costs of living.