8th Pay Commission: Fitment Factor 2.57 vs. 2.86 – What Will Be the Difference in Thousands?

How much will employees’ salaries change depending on whether the fitment factor under the 8th Pay Commission is set at 2.57 or 2.86? Here is a detailed breakdown for those with basic pay levels of ₹18,000, ₹25,500, ₹35,400, and ₹44,900.

Among central government employees, the fitment factor is the most discussed topic regarding the 8th Pay Commission. Various calculations based on figures like 2.57 and 2.86 are currently circulating. While the 8th Pay Commission has not yet finalized either of these fitment factors, the implementation of either one would result in a significant salary hike.

The question now arises: if a fitment factor of 2.86 is implemented instead of 2.57, what will be the difference (in thousands of rupees) in an employee’s basic salary? Here, you can understand the full calculation regarding the fitment factor and basic salary.

What is the fitment factor?

Increases in existing basic pay under a new pay commission are determined based on the fitment factor. For instance, if an employee’s current basic salary is ₹18,000 and a fitment factor of 2.57 is applied, the basic pay becomes ₹46,260; conversely, if a fitment factor of 2.86 is applied, the basic pay becomes ₹51,480.

What is the benefit for those with a basic pay of ₹18,000?

We were just discussing those with a basic pay of ₹18,000. For them, a fitment factor of 2.86 would result in a basic pay that is ₹5,220 higher than what a 2.57 factor would yield. On an annual basis, this amounts to an additional ₹62,640 in basic pay.

Are salary and basic pay the same thing?

No. The fitment factor applies directly to the basic pay, but an employee’s “in-hand” salary consists of more than just the basic pay; it also includes Dearness Allowance (DA), House Rent Allowance (HRA), and other allowances.

The implementation of a new pay commission inevitably brings changes to DA, and allowances like HRA may also be revised based on the new basic pay. Therefore, a difference of ₹5,220 in basic pay does not necessarily mean that every employee’s in-hand salary will immediately increase by exactly ₹5,220.

What is the difference for a Level 4 employee?

If a Level 4 employee’s current basic pay is ₹25,500, the difference resulting from the 2.57 and 2.86 fitment factors will be significant. With a basic salary of ₹25,500, applying a fitment factor of 2.57 results in a basic pay of ₹65,535, whereas a fitment factor of 2.86 results in ₹72,930. This creates a monthly difference of ₹7,395, amounting to an annual difference of ₹88,740.

How ​​will it affect a Level 6 employee?

For a Level 6 employee with a current basic pay of ₹35,400, applying a fitment factor of 2.57 results in a basic pay of ₹90,978, while a factor of 2.86 results in ₹1,01,244. This represents a monthly difference of ₹10,266, which translates to an annual difference of ₹1.23 lakh.

What is the difference for Level 7 employees?

The current basic pay for Level 7 is ₹44,900. If a fitment factor of 2.57 is applied, the basic pay will be ₹1,15,393; if 2.86 is applied, it will be ₹1,28,414. This translates to a monthly difference of ₹13,021 and an annual difference of ₹1.56 lakh.

What will be the benefit?

There is a difference of 0.29 between the fitment factors of 2.57 and 2.86. Consequently, comparing the two factors results in a monthly basic pay difference of approximately ₹5,220 for an employee with a basic pay of ₹18,000, ₹10,266 for one with ₹35,400, and ₹13,021 for one with ₹44,900. It remains to be seen which fitment factor will ultimately be implemented.