8th Pay Commission: Fitment Factor Likely In 1.9-2.1 Range, Says Expert, Cites Fiscal Constraints

While employee groups have sought a higher fitment factor to substantially raise basic pay, experts say the final recommendation will have to balance these demands with the government's fiscal position.

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8th Pay Commission
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  • The 8th Pay Commission has not yet announced the fitment factor for pay revision.
  • The 7th Pay Commission's fitment factor was 2.57, raising minimum pay to Rs 18,000.
  • Experts suggest the 8th fitment factor may range from 1.90 to 2.10 amid fiscal constraints.
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While the 8th Pay Commission presses ahead with stakeholder consultations, the curtain remains drawn on the fitment factor, keeping over 1.1 crore central government employees and pensioners guessing about the extent of their pay and pension revisions.

The fitment factor, which determines the revision in basic pay, stood at 1.86 under the 6th Pay Commission and 2.57 under the 7th, lifting the minimum basic salary from Rs 7,000 to Rs 18,000. The government has not indicated any likely figure for the 8th Pay Commission.

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Mohit Goyal, proprietor of Mohit S Goyal & Co., believes a fitment factor of 1.90 to 2.10 is the most realistic outcome. "Given the government's fiscal constraints, a factor above 2.3 appears less probable," he said. 

ALSO READ: 8th Pay Commission: When Will The Fitment Factor Report Arrive? Past Trend Hints At Long Wait

Goyal added that while the fitment factor is crucial, the overall compensation package will also depend on revisions to house rent allowance, transport allowance, children's education allowance and other service benefits. According to him, meaningful improvements in these components could help deliver a balanced and practical outcome despite a relatively lower multiplier.

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Adhil Shetty, chief executive officer of BankBazaar, said current estimates range from 2.28 to 2.86, but stressed that the final figure will depend on inflation, fiscal considerations and discussions with employee representatives. He noted that allowances such as HRA and transport allowance cannot fully compensate for a lower fitment factor because they are calculated on revised basic pay.

With consultations continuing, the eventual salary revision is expected to depend not only on the fitment factor but on the broader pay structure recommended by the Commission. The Commission is holding regional consultations with employee unions and pensioners to gather feedback on pay, allowances, pensions and service conditions before submitting its report by mid-2027. 

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While employee groups have sought a higher fitment factor to substantially raise basic pay, experts say the final recommendation will have to balance these demands with the government's fiscal position.

ALSO READ: 8th Pay Commission: Fitment Factor May Hit 2.86 If Inflation Tamed, Says Expert

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