8th Pay Commission: Following the announcement of the Eighth Pay Commission, the salary hike for central government employees has again become an issue of debate. Shiv Gopal Mishra, Secretary, National Council-Joint Consultative Machinery (NC-JCM), in his view on the fitment factor for the new pay commission, stated that it should be at least the fitment factor of the Seventh Pay Commission, which was 2.57, if not more, and it cannot be less than that of the previous pay commission.
What Is The Fitment Factor?
The Eighth Pay Commission was announced by the central government in January last year and is expected to take effect on January 1, 2026. The commission will assess the salaries and allowances of around 50 lakh central government employees and about 65 lakh pensioners. The recommendations of the Seventh Pay Commission were implemented in 2016. Mishra strongly argues for an increased fitment factor due to rising costs of living. By now you may be wondering what exactly a fitment factor is and how much can it increase?
Salary Increase As Per Fitment Factor
This time if the Eighth Pay Commission accepts Mishra’s fitment factor of 2.57, the minimum salary will move from Rs. 18,000 to Rs. 46,260, while the minimum pension will go up from Rs. 9,000 to Rs. 23,130. If it is continued with a higher fitment factor of 1.92, the salary would leap to Rs. 34,560, and the pension would touch Rs. 17,280, showing an increase of 92 per cent. As such, a further brace of rises in fitment factor leading to its height of 2.86 will simultaneously lift the salary to Rs. 51,480 while the pension will rise to Rs. 25,740, representing an increase of 186 per cent. This would put a big smile on the faces of the employees and pensioners.
Will It Rise By That Much?
Inarguably, the additional prevailing costs being incurred on real and consumable expenses cannot be met with the current status of the fitment factor, according to Mishra. Contrary to those issued by Mishra, former finance secretary Subhash Garg expresses his disagreement. Garg was of the opinion that the need for 2.86 fitment factor is being very improbable. Besides that, he estimates the government would somehow agree to the figure of 1.92, as the government otherwise cannot afford this huge scale of fat hike for them.
Come January 2026, the central government employees and the pensioners would know as to what would be the rise in the salary and pension, respectively. Until then, the fitment factor debate is likely to continue, with its different stakeholders viewing the issue from their respective perspectives.
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