"8th Pay Commission: Lower Fitment Factor Likely If DA-Basic Pay Merger Approved, Say Sources"

The 8th Pay Commission might recommend a lower-than-expected fitment factor if the central government goes ahead with the merger of dearness allowance (DA) and basic pay, according to two employee union leaders involved in ongoing discussions.

Although employee forums have been advocating for a fitment factor in the range of 2.57 to 2.86, sources familiar with the matter suggest that the Commission could propose a significantly reduced multiplier if the DA-basic pay merger receives formal approval.

In such a case, the fitment factor could turn out to be lower than what has been recently speculated in the media,” one of the individuals familiar with the matter.

The fitment factor serves as the key multiplier for revising the salaries of government employees and the pensions of retirees. Back in 2016, the 7th Pay Commission adopted a fitment factor of 2.57 to implement pay and pension revisions.

In February, a senior representative from the staff side of the National Council-Joint Consultative Machinery (NC-JCM)—a formal platform comprising union leaders and government officials— that they would urge the 8th Pay Commission to recommend at least the same fitment factor, if not a higher one.