2025 is about to end, and the new year is about to start with many big changes. Many financial changes will be seen in the country from January 1, 2026 (change in rules from January 1), while central government employees and pensioners are also eagerly waiting for it. This is because the 8th Pay Commission will be implemented from 1st, and as soon as it happens, there will be a significant increase in the salary of the employees.
Although many experts are making their predictions, its calculation will be based on the fitment factor. This fitment factor plays an important role in calculating the salary of employees, and many factors are considered in deciding it. Let us know what it is and how its increase increases the salary.
31st December is the last day of 7th Pay Commission
The current 7th Pay Commission, which was implemented in January 2016, will formally end on December 31, 2025. With its end, the 8th Pay Commission will be implemented for central government employees and pensioners. It is noteworthy that in October this year, the Union Cabinet led by PM Narendra Modi had approved the Terms of Reference for the 8th Pay Commission. Experts believe that even if the new salary structure becomes effective on paper on January 1, 2026, the actual salary revision and payment of dues may take time.
How much will the salary increase?
The picture regarding increase in salary after the implementation of the 8th Pay Commission is not clear. However, according to estimates, the fitment factor, which is considered important in determining the salary, is expected to be between 2.4 to 3.0. The salary increase will be decided on the basis of this calculation. Talking about the pay scales implemented earlier, the fitment factor in the Sixth Pay Commission was 1.86, whereas in the Seventh Pay Commission it was 2.57.
What is this fitment factor?
This fitment factor is a multiplier that is applied to the employee’s existing basic salary, and the new basic salary is calculated using this multiplier. Now, assuming the Expected Fitment Factor is 2.4 to 3.0, a Level 1 employee with a basic salary of ₹18,000 will see a salary increase of ₹43,200. Similarly, the basic salary of other employees will also increase. However, these are estimates regarding fitment factors. The new basic salary also affects other allowances received by employees and pensioners.
The focus here is on determining fitment
When the new pay commission is implemented, the fitment factor is decided on the basis of several factors. These include inflation and related cost of living, trends in the Consumer Price Index (CPI/CPI-IW), the government’s financial condition and budget capacity, and comparison with private sector salary structures. Overall, this is the main factor in deciding the salary increase.