As the 8 th Pay Commission is busy preparing its recommendations, central government employees are eagerly waiting for a high fitment factor, the multiplier that will boost their pay. The National Council – Joint Consultative Machinery (NC-JCM), the main central government employee body, has demanded a 3.833 fitment factor from the 8 th Pay Commission.
While some experts argue that this figure is too ambitious, many believe the 8 th CPC will settle for a fitment factor between 2.0 and 2.25. However, even if the Pay Commission finalises a 2.25 fitment factor, does it mean the gross salary of the central government employees will increase by the same proportion?
Past data shows that in the 7 th Pay Commission, gross salaries of employees rose by just 14.29% despite a 2.57 fitment factor. On the other hand, the fitment factor in the 6 th Pay Commission was 1.86, but the gross salary hike was 54%. A Bankbazaar projection shows that even if the 8 th Pay Commission finalises a fitment factor in the range of 2.0-2.57, the gross salary of Level 1-18 employees could rise only by 31-68%
A Bankbazaar projection shows that even if the 8 th Pay Commission finalises fitment factors in the range of 2.0-2.57, the gross salary of Level 1-18 employees could only rise only by 31-68%.
Gross salary hikes under 4th-7th Pay Commissions
Looking at the gross salary hike data from the 4 th to the 7 th Pay Commission, the biggest jump was 54% under the 6 th Pay Commission with a fitment factor of 1.86. In contrast, the 7 th Pay Commission, which had a fitment factor of 2.57, offered the smallest salary increase of 14.29%. The gross salary hikes for the 4 th and 5 th Pay Commissions were 27.60% and 31%, respectively.
This might leave many readers scratching their heads, wondering how the gross salary hike could be lower even with a higher fitment factor.
Why gross salary hike may be less despite high fitment factor?
The current DA rate plays a significant role in this situation. For instance, when the 7 th Pay Commission was implemented, it included a DA rate of 125% from the 6 th Pay Commission. This indicated that without any increase, the existing fitment factor stood at 2.25 (100% for basic pay+125% for DA). So, a 2.57 fitment factor didn’t mean a 157% hike.
Manjeet Singh Patel, president, All India New Pension Scheme Employees Federation (AINPSEF), told ET Wealth that other than the high DA rate accommodation, the employees’ basic salaries of the previous pay commission were also normalise in the 7 th Pay Commission to draw parity.
“So, the average pay hike turned out to be just 14.29%. However, at the time of the 6 th Pay Commission, the prevailing DA rate was just 24%, which means the prevailing fitment factor of 1.24 was already there. That’s why a 1.86 fitment factor gave a 54% gross salary hike,” says Patel.
Gross salary hike under 4th-7th Pay Commissions
| Pay Commission | Hike in Gross Pay | Fitment Factor | Minimum Basic Salary |
| 4th Pay Commission | 27.60% | — | ₹ 750 |
| 5th Pay Commission | 31% | — | ₹ 2,550 |
| 6th Pay Commission | 54% | 1.86 | ₹ 7,000 |
| 7th Pay Commission | 14.29% | 2.57 | ₹ 18,000 |
Main salary components of central government employees
While basic salary, DA, HRA and TPTA are common allowances to nearly all central government employees, other salary allowances may vary depending on an employee’s work, status of job, risk in job, place of posting, etc.
Estimated gross salary hike in the 8th Pay Commission
In its projections, Bankbazaar shows the estimated gross salary increase for Level 11-18 employees at fitment factors of 2.0, 2.38 and 2.57 under the 8 th Pay Commission. Projections that only took the basic pay and HRA for calculations show the estimated hike to be 31%-53%.
Particulars for gross salary growth calculation
Current salary= current basic salary (e.g., Level 1= Rs 18,000)
Gross salary= Basic salary+DA (60% of basic pay)+HRA (24% of basic pay for X category cities)
Revised basic salary= Current basic payX fitment factor
New gross salary= Revised basic salary+ 24% of revised basic salary (for X category city)
Basic pay hike (%)= Revised basic-current basic pay (%)
Gross salary hike (%)= % hike of new vs old gross salary
Growth ratio= Gross salary hike/basic pay hike
The gross salary for calculations includes the basic salary, DA and HRA.
Estimated salary growth for Level 11 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 67,700 |
| Current Gross Salary | ₹ 1,28,630 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 1,35,400 | ₹ 1,67,896 | 100% | 31% | 0.31 |
| 2.38 | ₹ 1,61,126 | ₹ 1,99,796 | 138% | 55% | 0.40 |
| 2.57 | ₹ 1,73,989 | ₹ 2,15,746 | 157% | 68% | 0.43 |
Estimated salary growth for Level 12 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 78,800 |
| Current Gross Salary | ₹ 1,49,720 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 1,57,600 | ₹ 1,95,424 | 100% | 31% | 0.31 |
| 2.38 | ₹ 1,87,544 | ₹ 2,32,555 | 138% | 55% | 0.40 |
| 2.57 | ₹ 2,02,516 | ₹ 2,51,120 | 157% | 68% | 0.43 |
Estimated salary growth for Level 13 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 1,23,100 |
| Current Gross Salary | ₹ 2,33,890 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 2,46,200 | ₹ 3,05,288 | 100% | 31% | 0.31 |
| 2.38 | ₹ 2,92,978 | ₹ 3,63,293 | 138% | 55% | 0.40 |
| 2.57 | ₹ 3,16,367 | ₹ 3,92,295 | 157% | 68% | 0.43 |
Estimated salary growth for Level 13A employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 1,31,100 |
| Current Gross Salary | ₹ 2,49,090 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 2,62,200 | ₹ 3,25,128 | 100% | 31% | 0.31 |
| 2.38 | ₹ 3,12,018 | ₹ 3,86,902 | 138% | 55% | 0.40 |
| 2.57 | ₹ 3,36,927 | ₹ 4,17,789 | 157% | 68% | 0.43 |
Estimated salary growth for Level 14 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 1,44,200 |
| Current Gross Salary | ₹ 2,73,980 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 2,88,400 | ₹ 3,57,616 | 100% | 31% | 0.31 |
| 2.38 | ₹ 3,43,196 | ₹ 4,25,563 | 138% | 55% | 0.40 |
| 2.57 | ₹ 3,70,594 | ₹ 4,59,537 | 157% | 68% | 0.43 |
Estimated salary growth for Level 15 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 1,82,200 |
| Current Gross Salary | ₹ 3,46,180 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 3,64,400 | ₹ 4,51,856 | 100% | 31% | 0.31 |
| 2.38 | ₹ 4,33,636 | ₹ 5,37,709 | 138% | 55% | 0.40 |
| 2.57 | ₹ 4,68,254 | ₹ 5,80,635 | 157% | 68% | 0.43 |
Estimated salary growth for Level 16 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 2,05,400 |
| Current Gross Salary | ₹ 3,90,260 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 4,10,800 | ₹ 5,09,392 | 100% | 31% | 0.31 |
| 2.38 | ₹ 4,88,852 | ₹ 6,06,176 | 138% | 55% | 0.40 |
| 2.57 | ₹ 5,27,878 | ₹ 6,54,569 | 157% | 68% | 0.43 |
Estimated salary growth for Level 17 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 2,25,000 |
| Current Gross Salary | ₹ 4,27,500 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 4,50,000 | ₹ 5,58,000 | 100% | 31% | 0.31 |
| 2.38 | ₹ 5,35,500 | ₹ 6,64,020 | 138% | 55% | 0.40 |
| 2.57 | ₹ 5,78,250 | ₹ 7,17,030 | 157% | 68% | 0.43 |
Estimated salary growth for Level 18 employees at 2.0, 2.38 and 2.57 fitment factors
| Current Basic | ₹ 2,50,000 |
| Current Gross Salary | ₹ 4,75,000 |
| Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
| 2 | ₹ 5,00,000 | ₹ 6,20,000 | 100% | 31% | 0.31 |
| 2.38 | ₹ 5,95,000 | ₹ 7,37,800 | 138% | 55% | 0.40 |
| 2.57 | ₹ 6,42,500 | ₹ 7,96,700 | 157% | 68% | 0.43 |
Source: Bankbazaar.com
