8th Pay Commission fitment factor: Expert explains how fitment factor may reach 2.10; check salary hike calculation

The Lucknow meetings of the 8^th Pay Commission wrapped up on Tuesday, and now central government employees and pensioners are eagerly waiting for the fast conclusion of the upcoming engagements, including 8^th CPC’s July meetings in Bhubaneswar and Kolkata. The quicker the 8^th Pay Commission files its report and the government gives its green light, the sooner these employees and pensioners will get their increased payouts.

The amount of their raise will depend on the fitment factor, which is the multiplier used for pay and pension revisions in a new pay commission. There’s a lot of speculation about the likely fitment factor. Some experts believe that it could exceed 2.57, the fitment factor for the 7^th Pay Commission, while others suggest that given the current economic scenario, a maximum of 2.0 can be expected. The actual fitment factor will be known only when the government approves it. But an expert’s calculations show that it could be in the range of 2.05 to 2.10.

Manjeet Singh Patel, National President of the All India NPS Employees Federation (AINPS), says that if we take into consideration the dearness allowance (DA), house rent allowance (HRA) and transport allowance (TA) as of December 31, 2026, the fitment factor can go up to 2.1 without factoring in any growth component.


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In his second scenario calculation, Patel shows that if the government agrees to the employee and pensioner bodies’ recommendation of increasing the family unit count for calculating the fitment factor from 3 to 4.4, the fitment factor could easily hit 2.05 without including any growth factor.

A growth factor is essentially the component that a pay commission may provide to central government employees to raise their standard of living as per the parameters defined by the United Nations’ Human Development Index.

Scenario 1: How 8^th Pay Commission’s fitment factor may be 2.10

Patel presents two scenarios for a 2.1 fitment factor in his calculations. In his first scenario, he takes the example of a Level 1 employee residing in a X category city:

Basic pay as on December 31, 2025 (the last day of 7^th Pay Commission)= Rs 18,000

Dearness allowance (DA) 58% (as on Dec 31, 2025)= Rs 10,800

House rent allowance (HRA) 30% (X category city)= Rs 5,400

Travel allowance (TPTA) Rs 1,800+58% of 1,800 (because of 58% DA)= Rs 1,800+Rs 1,080= Rs 2,880

Gross pay= Rs 37,080

Fitment factor= Rs 37,080/18,000= 2.06

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If the government considers the nearest single point after decimal, a 2.06 fitment factor can be 2.10.

Based on the 2.1 fitment factor, a Level 1 employee’s gross salary as of January 1, 2026 (also showing a 2% DA hike in the same month)

Basic salary= Rs 18,000×2.1= Rs 37,800

DA (2% of Rs 37,800)= Rs 756

HRA (36%, assuming the new HRA rate for an X category city will be increased to 36%)= Rs 13,608

TPTA Rs 9,000 (assuming it will be the new rate for a X category city in the 8^th CPC)+(2% of Rs 37,800)= Rs 9,180

Gross salary= Rs 61,344

Overall hike in salary= 65%

Scenario 2: How 8^th Pay Commission fitment factor can be 2.10

Patel’s second fitment factor calculation is based on the number of family units. In the 7^th Pay Commission, the family unit count was 3 (employee 1.0, spouse 0.8, first child 0.6, second child 0.6).

Patel says if the government also takes parents as 1.2 units (0.6+0.6) in the 8^th Pay Commission, the family unit count will increase to 4.2 (3.0+1.2).

A 4.2 family unit means a 46.66% increase from 3.0 family units.

If 46.66% is added to 158% (100% basic salary+58% DA as on December 31, 2025), it will be 205% or a 2.05 fitment factor.

If the government considers the nearest single point after decimal, a 2.05 fitment factor can be 2.10.

Note: These are illustrative calculations based on the fitment factor 2.1 model attributed to AINPSEF president Manjeet Singh Patel. The actual recommendations of the 8th Pay Commission have not been finalised.