Ever since talks about the new pay commission started, one number has caught everyone’s attention — 1.96. That’s the proposed fitment factor that could decide your new basic salary. But what does it really mean for your take-home pay? Let’s break it down in simple terms.
What Is the 8th Pay Commission?
The Eighth Pay Commission is expected to revise the salaries, pensions, and allowances of over 5 million central government employees and 6.5 million pensioners across India.
While the official implementation might take until 2027, the benefits are likely to be counted from January 1, 2026 — meaning employees could receive arrears for that period once it’s approved.
So yes, it’s not just about a future salary increase — it could also mean a lump-sum payment later.
What Is a Fitment Factor and Why Does It Matter?
Here’s the thing: the fitment factor is the heart of the entire salary revision. It’s a multiplier used to calculate your new basic salary from your current basic salary.
Let’s look at a quick example:
- Under the 6th Pay Commission, the minimum basic salary was ₹7,000.
- The 7th Pay Commission used a fitment factor of 2.57, which raised it to ₹18,000.
Now, for the 8th Pay Commission, experts predict the fitment factor could be 1.96, although some reports suggest it might go as high as 2.86.
8th Pay Commission Salary Calculation Formula
The formula is simple and easy to use:
Old Basic Salary × Fitment Factor = New Basic Salary
For example:
If your current basic salary is ₹18,000 (Level 1 employee), then:
₹18,000 × 1.96 = ₹35,280
So, under the 8th Pay Commission, your new basic salary could rise to ₹35,280.
That’s almost double your current base pay, and that’s before including allowances like HRA and DA.
How Much Will the Total Salary Increase?
Let’s take a real example to make this clearer.
Suppose you’re a Level 9 central government employee.
- Current Basic Salary = ₹53,100
- DA (Dearness Allowance) = 58% of Basic = ₹30,798
- HRA (House Rent Allowance) = 27% of Basic = ₹14,337 (for a metro city like Delhi)
So, your total salary now = ₹53,100 + ₹30,798 + ₹14,337 = ₹98,235
Now, let’s apply the 8th Pay Commission formula using the fitment factor of 1.96:
- New Basic Salary = ₹53,100 × 1.96 = ₹1,04,076
- DA (reset to 0% initially) = ₹0
- HRA = 27% of ₹1,04,076 = ₹28,100
- Total New Salary = ₹1,04,076 + ₹28,100 = ₹1,32,176
That’s a difference of nearly ₹34,000 more per month — and this is before DA starts increasing again in the following months.
What About Dearness Allowance (DA) and HRA?
When a new pay commission is implemented, the DA is usually reset to 0% because it’s already included in the revised pay structure. Over time, as inflation rises, the DA percentage will again start increasing every six months.
Your HRA (House Rent Allowance) will still depend on your city:
- 27% for Metro cities
- 18% for Tier-2 cities
- 9% for smaller towns
That means your total in-hand salary could vary slightly based on where you live.
Level-Wise Expected Salary Increase
Here’s a simplified estimate using a fitment factor of 1.96:
| Pay Level | Current Basic (₹) | Expected Basic (₹) | Increase (₹) |
|---|---|---|---|
| Level 1 | 18,000 | 35,280 | +17,280 |
| Level 5 | 29,200 | 57,232 | +28,032 |
| Level 9 | 53,100 | 1,04,076 | +50,976 |
| Level 13 | 1,23,100 | 2,41,276 | +1,18,176 |
| Level 18 | 2,25,000 | 4,41,000 | +2,16,000 |
(Note: These figures are estimates based on assumptions; official figures will depend on final recommendations.)
Why This Matters
This update isn’t just about higher pay. A new pay commission often triggers a chain reaction — higher pensions, revised DA slabs, and more purchasing power among government employees. That means a boost for the economy as well, since millions of people will have more money to spend.
So yes, while we’re still waiting for official confirmation, the 8th Pay Commission could truly be a Diwali-sized bonus for India’s government workforce.
Frequently Asked Questions
1. When will the 8th Pay Commission be implemented?
It’s expected to take effect from January 1, 2026, though full implementation may take until 2027. Arrears for the pending period will likely be paid once approved.
2. What is the fitment factor in the 8th Pay Commission?
It’s the multiplier used to calculate new basic pay from old basic pay. Current estimates suggest a fitment factor of 1.96, though final numbers may vary.
3. Will DA continue under the 8th Pay Commission?
No, DA will be reset to 0% after the new pay structure takes effect, and it will start increasing again every six months based on inflation.