8th Pay Commission: With the announcement of the Eighth Pay Commission, the debate has started again regarding the salary hike of central government employees. Shiv Gopal Mishra, Secretary, National Council-Joint Consultative Machinery (NC-JCM), has shared his views on the fitment factor for the new pay commission. Mishra believes that the fitment factor should be at least 2.57, which was in the Seventh Pay Commission, or even more. He says that it should not be less than the rate fixed in the previous pay commission.
What Is The Fitment Factor?
The Eighth Pay Commission was announced in January last year and is planned to start from January 2026. This commission will review the salaries and allowances of about 50 lakh central government employees and 65 lakh pensioners. The recommendations of the Seventh Pay Commission were implemented in 2016. However, with rising living costs, Mishra’s demand for a higher fitment factor has become even more important. At such a time, you’re probably wondering: what exactly is the fitment factor, and how much can it go up?
The fitment factor plays a key role in determining the basic pay and pension of government employees. For example, if the Eighth Pay Commission uses a fitment factor of 2.57, central employees’ salaries will increase by 157%. This is what happened in 2016 when the Seventh Pay Commission raised the minimum pay from ₹7,000 to ₹18,000
Salary Hike As Per Fitment Factor
This time, if the Eighth Pay Commission adopts Mishra’s proposed 2.57 fitment factor, the minimum pay of central employees will increase from ₹18,000 to ₹46,260. The minimum pension will also increase from ₹9,000 to ₹23,130.
However, if a fitment factor of 1.92 is applied, the salary will be ₹34,560 and pension ₹17,280, representing an increase of 92%. If the fitment factor increases to 2.86, the salary will increase to ₹51,480 and pension ₹25,740, representing an increase of 186%. This will provide significant financial relief to employees and pensioners.
Why Does Mishra Want a Higher Fitment Factor?
Mishra explained that the 2.57 fitment factor used in the 7th Pay Commission was based on an outdated formula that failed to capture modern expenses like internet, education, healthcare, and such necessities. He feels that due to high inflation or costs of living, a higher fitment factor is needed to ensure that employees have a decent life.
This change has now been enshrined in law under the Maintenance and Welfare of Parents and Senior Citizens Act, 2022: The care of elderly parents is a moral and, now, also a legal duty. This shift in family obligations should also be accounted for when discussing the fitment factor.
Will There Be Such An Increase In The Fitment Factor?
Given the inflation and rise in costs of living, Mishra argues that the current fitment factor is insufficient to take care of the basic living expenses. On the other hand, however, former finance secretary Subhash Garg criticizes Mishra’s demand.
He described that asking for a fitment factor of 2.86 is impractical. The number that is closer to 1.92 is what has been his estimation for what the government might be willing to settle, obviously, since the government would easily not consider such a pay hike owing to a financial crunch.
How Are The Employees Reacting?
No concrete decision is there as yet on the fitment factor for the Eighth Pay Commission. There completely diverging positions on the demand placed for a higher fitment factor: Mishra’s and Garg’s.
Mishra’s proposal is being supported by a segment of central government employees, who state that the increasing expenses of internet, education, and health care qualify for a pay increase. “A fitment factor of 2.57 or more will bring unthought of succor,” said an employee.
On the other hand, there are others who agree with Garg, arguing that such an increase may not be feasible considering the present-day exigencies of government revenues.
Policies: The Present Economic Situation
The final decision regarding the salary adjustment of the central government employees depends on many factors. The government is required to weigh its own financial capability, the rate of inflation, and the needs of the employees. With inflation in India, employees are finding it a burden to sustain day-to-day life with the rise of basic necessities.
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