8th Pay Commission fitment factor: Does 2.0 fitment factor mean 2x gross pay hike for Level 1-18 employees?

While the 8th Pay Commission is busy drafting its recommendations for central government employees and pensioners, a hot topic of discussion is the fitment factor. This multiplier is crucial as it boosts the basic pay of the employees and pensioners. For example, if the basic pay of an employee is Rs 35,400, it would double if the 8th Pay Commission decides on a fitment factor of 2.0.

But other than basic salary, most central government employees receive at least three additional components- dearness allowance (DA), house rent allowance (HRA) and transport allowance (TPTA), which form their gross salary.


Many employees are wondering if a 2.0 fitment factor could also mean their gross salary would double. Let’s explore that it might not be the case even with a high fitment factor!

Why a 2.0 fitment factor may not double the gross pay of an employee

Before diving into why gross pay may not double with a 2.0 fitment factor, let’s take a look at how the gross pay has risen in the previous two pay commissions. The 6th Pay Commission set a fitment factor of 1.86, but the average gross salary hike was 54%. The 7th Pay Commission went with a much higher fitment factor of 2.57, but the gross salary hike was only 14.29%.

This discrepancy mainly arises from the DA rate at the conclusion of each pay commission. Additionally, changes in other allowances also play a role in determining gross salary.

For instance, the DA at the end of the 6th Pay Commission was 125%. So, when it was adjusted to calculate the basic pay for the 7th Pay Commission, the fitment factor was already 2.25 (100% for basic pay+125% for DA). This implies that the employees were already getting their gross salary at a 2.25 fitment factor during the 6th Pay Commission. Consequently, when the 7th Pay Commission fixed a 2.57 fitment factor, the average gross salary jumped by just 14.29%.

Now, let’s consider the 6th Pay Commission again. It adjusted the 47% DA of the 5th Pay Commission. It means employees were already getting a 1.47 fitment factor. So, even at a 1.86 fitment factor, employees got a 54% hike in their gross salary.

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

How gross salary may rise for Level 3-6 employees in 8th Pay Commission

While the fitment factor is still up in the air, with an illustration from Bankbazaar, ET Wealth Online will show how the gross pay of Level 3-6 central government employees may rise by just 31%, 55% and 68% at fitment factors of 2.0, 2.38 and 2.57, respectively.

In this example, an employee’s current gross pay will be calculated based on the current DA rate of 60% and a 30% HRA rate for those residing in X-category cities.

For the revised gross salary estimates under the 8th Pay Commission, the HRA rate will be set at 24%, as the original HRA for X category cities was 24% in the 7th Pay Commission. When DA reached 50% in January 2024, the rate was increased to 30%.

Estimated revised gross pay of Level 3 employees in 8th Pay Commission

Assumption

Current Basic			₹ 21,700
Current Gross Salary			₹ 41,230
Current DA rate as on 1 Jan 2026.			60.0%
Current HRA rate for X-city (DA > 50% threshold)			30.0%
New DA rate at 8th CPC (resets to 0%)			0.0%
New HRA base rate for Cat 'X' city			24.0%

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 43,400	₹ 53,816	100%	31%	0.31
2.38	₹ 51,646	₹ 64,041	138%	55%	0.40
2.57	₹ 55,769	₹ 69,154	157%	68%	0.43

The estimates show that the gross salary may rise just 31% at a 2.0 fitment factor. While a 2.57 fitment factor, which was also the multiplier in the 7th Pay Commission, may provide only a 68% gross pay rise under the 8th Pay Commission.

Disclaimer: Illustrative estimates based on assumed fitment factors; final pay and allowances may vary. Source: BankBazaar.com

Estimated revised gross pay of Level 4 employees in 8th Pay Commission

Assumption

Current Basic			₹ 25,500
Current Gross Salary			₹ 48,450
Current DA rate as on 1 Jan 2026.			60.0%
Current HRA rate for X-city (DA > 50% threshold)			30.0%
New DA rate at 8th CPC (resets to 0%)			0.0%
New HRA base rate for Cat 'X' city			24.0%

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 51,000	₹ 63,240	100%	31%	0.31
2.38	₹ 60,690	₹ 75,256	138%	55%	0.40
2.57	₹ 65,535	₹ 81,263	157%	68%	0.43

Estimated revised gross pay of Level 5 employees in 8th Pay Commission

Assumption

Current Basic			₹ 29,200
Current Gross Salary			₹ 55,480
Current DA rate as on 1 Jan 2026.			60.0%
Current HRA rate for X-city (DA > 50% threshold)			30.0%
New DA rate at 8th CPC (resets to 0%)			0.0%
New HRA base rate for Cat 'X' city			24.0%

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike	Gross salary hike	Ratio
2	₹ 58,400	₹ 72,416	100%	31%	0.31
2.38	₹ 69,496	₹ 86,175	138%	55%	0.40
2.57	₹ 75,044	₹ 93,055	157%	68%	0.43

Estimated revised gross pay of Level 6 employees in 8th Pay Commission

Assumption

Current Basic			₹ 35,400
Current Gross Salary			₹ 67,260
Current DA rate as on 1 Jan 2026.			60.0%
Current HRA rate for X-city (DA > 50% threshold)			30.0%
New DA rate at 8th CPC (resets to 0%)			0.0%
New HRA base rate for Cat 'X' city			24.0%

Fitment Factor	Revised Basic	New Gross Salary	Basic Pay Hike → Gross Salary Hike	Ratio
2	₹ 70,800	₹ 87,792	100% → 30.5%	0.31
2.38	₹ 84,252	₹ 1,04,472	138% → 55.3%	0.40
2.57	₹ 90,978	₹ 1,12,813	157% → 67.7%	0.43