The fitment factor is once again at the center of discussion among central government employees and pensioners in 2025. Under the 7th Pay Commission (implemented in 2016), the fitment factor was fixed at 2.57, which raised the minimum basic pay to ₹18,000.
Now, with inflation and higher living costs, employee unions are demanding that the factor be revised to 3.68. If approved, this would push the basic salary up to ₹26,000. This demand has drawn massive attention from around 48 lakh employees and 65 lakh pensioners covered under the 7th CPC.
What Is the Fitment Factor?
The fitment factor is a multiplier used to calculate revised salaries and pensions of central government employees. It ensures that pay keeps up with the rising cost of living.
- Current factor: 2.57 → Salary is 2.57 times the pre-revised pay
- Proposed factor: 3.68 → Salary would rise further
Example:
- A government employee earning ₹18,000 now would receive ₹26,000 if the demand is approved.
Union Demands and Relief for Employees
Employee unions, under the National Council (JCM), argue that the current pay does not match today’s expenses. Essential goods have become costly, making it hard for employees and pensioners to manage with the existing salary structure.
If implemented, the hike would give employees higher salaries and bring pensioners much-needed financial relief, especially those who depend solely on pensions.
Government’s Position
The Finance Ministry has not yet made any official announcement about revising the fitment factor. Instead, the focus is shifting to the 8th Pay Commission, which will take effect from 1 January 2026 after the 7th CPC ends in December 2025.
At present:
- Fitment factor remains 2.57
- Only Dearness Allowance (DA), revised to 55% in January 2025, is helping employees and pensioners tackle inflation
Salary and Pension Impact of 3.68 Factor
If the proposed factor is approved, the changes would be major.
| Category | Current Basic (₹) | With 2.57 Factor (₹) | With 3.68 Factor (₹) |
|---|---|---|---|
| Entry-Level Employee | 18,000 | 18,000 | 26,000 |
| Mid-Level Employee | 50,000 | 50,000 | 72,000 |
| Entry-Level Pensioner | 9,000 | 9,000 | 13,000 |
| Mid-Level Pensioner | 30,000 | 30,000 | 43,200 |
Note: These figures exclude DA and other allowances, so actual take-home pay would be even higher.
Pensioners’ Demands
Pensioners have been vocal about this revision. With rising medical bills and day-to-day expenses, they argue that current pensions are not sufficient.
- Example: A pensioner getting ₹9,000 now would see it rise to ₹13,000 if the 3.68 factor is approved.
- Adding DA at 55% would increase their monthly pension further, restoring lost purchasing power.
What’s Next: 8th Pay Commission 2026
The government has already approved the formation of the 8th Pay Commission in January 2025. Its recommendations are expected by late 2025, and any approved changes will be applicable from 1 January 2026.
So, while the demand for a fitment factor hike is active, major revisions may only happen under the new pay commission. Employees and pensioners should plan their finances accordingly.
Final Note
The demand for a 3.68 fitment factor has given hope to millions of employees and pensioners. However, no official decision has been made yet. For updates, keep an eye on:
Until then, monitoring changes in DA and preparing for the 8th Pay Commission is crucial.