Former finance secretary of India, Subhash Chandra Garg, told News24 in an exclusive interview that the government may approve the fitment factor of 1.92-2.08 under the 8th Pay Commission. Recently, Shiv Gopal Mishra, secretary of National Council of Joint Consultative Machinery’s (NC-JCM) said that the next Pay Commission will recommend a fitment factor of “at least 2.86”.
However, Garg said, “NC-JCM can ask for the moon. Fitment factor of 2.86% is asking for the moon, which is impossible to get.” “To determine the fitment factor, the pay commission will consider the basic pay plus Dearness Allowance (DA) as of January 1, 2026,” he explained.
Furthermore, Garg said, “Currently, the DA is 53% (as of July 1, 2024). To calculate the DA till January 1, 2026, two more installments need to be added: one due on January 1, 2025, and another on July 1, 2025. Assuming a 7% increase, the DA for January 1, 2026, would be approximately 60%.”
He added, “With the starting factor of 1.6, the next step is to determine the percentage increase. Usually, pay commissions have recommended increases ranging from 15% to 30%. The previous pay commission recommended an increase of around 14-15%. In my assessment, the additional fitment factor to be applied to the base factor of 1.6 is likely to range between 10-30%.”
“Taking 20% of the base factor 1.6 or 160, we get 32. Adding 32 to 160 results in a revised fitment factor of 192 or 1.92. If we assume a more generous 30% increase, the calculation would be: 30% of 160 is 48. Adding this to the base factor, we get 208, or a revised fitment factor of 2.08. So, the actual fitment factor is likely to be between 1.92-2.08,” Garg concluded.
8th Pay Commission: 186% Or 108% Salary Hike?
If the government approves the fitment factor of 2.86, then it may give a 186% pay hike to the central government employees. Furthermore, pensioners’ pensions at this fitment factor could rise from Rs 9,000 to Rs 25,740.
However, Garg said it is impossible that the government approves the fitment factor of 2.86. He said the government may approve the fitment factor ranging between 1.92-2.08. If the government approves the fitment factor of 2.08, the minimum basic pay of the central government employees would increase from Rs 18,000 to Rs 37,440, a 108% salary hike. Additionally, pensioners’ pensions could rise from Rs 9,000 to Rs 18,720 at this fitment factor.
