8th Pay Commission: Subhash Chandra Garg, a 1983-batch IAS officer of Rajasthan cadre and the former finance secretary of India, told News24 in an exclusive interview that the government may approve the fitment factor of 1.92-2.08 under the next Pay Commission. He said, “NC-JCM can ask for the moon. Fitment factor of 2.86% is asking for the moon, which is impossible.” “To determine the fitment factor, the pay commission will consider the basic pay plus Dearness Allowance (DA) as of January 1, 2026,” he added.
“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%,” said Garg.
"The actual fitment factor under 8th Pay Commission is likely to be between 1.92-2.08," says Subhash Chandra Garg, former finance secretary of India. #8thPayCommission #subhashchandragarg #news24exclusive @Subhashgarg1960 pic.twitter.com/bt02xH8VE5
— News24 English (@News24eng) January 28, 2025
“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%,” he said, adding, “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.”
8th Pay Commission: Speculations On 186% Pay Hike
Recently, National Council of Joint Consultative Machinery’s (NC-JCM) secretary, Shiv Gopal Mishra said that the new Pay Commission may consider a fitment factor of “at least 2.86”. This will lead to a significant 186% pay hike for the central government employees. If the government approves this fitment factor, the minimum basic salary would increase from Rs 18,000 to Rs 51,480. Furthermore, pensioners’ pensions could rise from Rs 9,000 to Rs 25,740.
However, if we consider Garg’s statement, the highest fitment factor that government may offer is 2.08. If the government approves this fitment factor, the minimum basic salary would increase from Rs 18,000 to Rs 37,440, a 108% salary hike. Furthermore, pensioners’ pensions could rise from Rs 9,000 to Rs 18,720. However, it’s still unclear that how much fitment factor will the new Pay Commission recommend.
