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8th Pay Commission: What Could Your Salary Look Like? Here’s How Different Fitment Factors May Change Level 1 to Level 10 Basic Pay

Samira Vishwas | July 18, 2026 4:24 PM CST

The 8th Pay Commission has formally begun consultations with central government employees and pensioners, marking the first major step towards the next round of salary revisions. During its meeting in Kolkata on July 10, the commission heard the demands and concerns of the employee unions, pensioners’ associations and other stakeholders. Such meetings will take place across the country before the panel finalises its recommendations and submits its report to the Centre.

The consultation process has begun but the question which still hangs over the discussions among nearly one crore central government employees and pensioners is: What will be the fitment factor?

The government has not disclosed the fitment factor or the range of options it is considering. But this single number is set to have the biggest say in determining how much the salaries, pensions and a host of other benefits of employees go up under the 8th Pay Commission.

What Is The Significance Of The Fitment Factor?

The fitment factor is the single most important figure in the 8th Pay Commission – it determines everything from the minimum pay at level 1 to the pension of the most senior retired IAS officer. Simply put, the fitment factor is a multiplier used to alter an employee’s existing basic pay.

The facts are simple:

Revised Basic Pay = Existing Basic Pay x Fitment Factor

Suppose an employee earns Rs 18,000 as basic pay and the fitment factor is fixed at 2.5, then the revised basic salary becomes Rs 45,000 before the add-on allowances.

The higher the multiplier, the higher the revised basic pay will be.

This is important because many allowances, including House Rent Allowance (HRA), Transport Allowance (TA), future Dearness Allowance (DA) revisions and pension, are linked directly or indirectly to the basic salary. These benefits also increase with the basic pay.

That is why the fitment factor is considered the most important part of every pay commission.

How Much Could Basic Pay Increase?

Since the government has not declared the final fitment factor, experts advise checking out different possibilities rather than relying on one particular estimate.

The ultimate impact of the 8th Pay Commission will depend on the fitment factor that the government finally approves,’ said Adhil Shetty, CEO of BankBazaar. In his words, looking at different scenarios helps employees understand how their salaries might change at different pay grades.

He says, “The impact of the fitment factor varies across pay levels, making it useful to look at multiple scenarios rather than focusing on a single estimate. For instance, a Level 1 employee’s revised basic pay could increase from the current ₹18,000 to ₹37,800 under a 2.1 fitment factor, ₹45,000 under 2.5 and ₹54,000 under 3.0.”

He added, “Similarly, a Level 10 employee’s revised basic pay could increase from ₹56,100 to ₹1.18 lakh, ₹1.40 lakh and ₹1.68 lakh across the three scenarios. Looking at these outcomes side by side gives employees a clearer picture of how different fitment factors could affect salaries across the pay matrix and helps them set realistic expectations while the commission’s recommendations are still under consideration.”

Fitment Factor and Estimated Basic Salary

Pay Level	Current Basic Pay	2.1 Fitment	2.5 Fitment	3.0 Fitment
Level 1	Rs 18,000	Rs 37,800	Rs 45,000	Rs 54,000
Level 2	Rs 19,900	Rs 41,790	Rs 49,750	Rs 59,700
Level 3	Rs 21,700	Rs 45,570	Rs 54,250	Rs 65,100
Level 4	Rs 25,500	Rs 53,550	Rs 63,750	Rs 76,500
Level 5	Rs 29,200	Rs 61,320	Rs 73,000	Rs 87,600
Level 6	Rs 35,400	Rs 74,340	Rs 88,500	Rs 1.06 lakh
Level 7	Rs 44,900	Rs 94,290	Rs 1.12 lakh	Rs 1.35 lakh
Level 8	Rs 47,600	Rs 99,960	Rs 1.19 lakh	Rs 1.43 lakh
Level 9	Rs 53,100	Rs 1.12 lakh	Rs 1.33 lakh	Rs 1.59 lakh
Level 10	Rs 56,100	Rs 1.18 lakh	Rs 1.40 lakh	Rs 1.68 lakh

Note: The figures are derived by assuming fitment factors of 2.1, 2.5 and 3.0 on the existing basic pay. The government has not yet announced the final fitment factor for the 8th Pay Commission.

Who Falls Under These Pay Levels?

In case you are not aware of the government pay matrix, here is an idea of the broad categories of employees covered under different pay levels.

Generally, Level 1 comprises Multi-Tasking Staff (MTS), peons, helpers and other support staff. Level 2-4 employees include lower division clerks (LDCs), drivers, junior clerks and technicians. Employees in levels 5 to 7 are generally senior assistants, inspectors, office superintendents and section officers.

Assistant engineers, assistant section officers and other gazetted officers are generally in levels 8 to 10, but specific designations may vary across ministries and departments.

The final fitment factor will determine the revised basic salary of employees at all these levels and will also impact several other elements of their monthly earnings.

Estimated HRA for different fitment factor scenarios (2.0 to 2.57)

The below estimates are based on the assumed fitment factors between 2.0 and 2.57 and existing HRA rates of 30% (X cities), 20% (Y cities) and 10% (Z cities). These are indicative calculations and not official figures of the 8th Pay Commission.

Pay Level	Current Basic Pay	X Cities (30% HRA)	Y Cities (20% HRA)	Z Cities (10% HRA)
Level 1	Rs 18,000	Rs 10,800 – Rs 13,880	Rs 7,200 – Rs 9,250	Rs 3,600 – Rs 4,630
Level 2	Rs 19,900	Rs 11,940 – Rs 15,340	Rs 7,960 – Rs 10,230	Rs 3,980 – Rs 5,110
Level 3	Rs 21,700	Rs 13,020 – Rs 16,730	Rs 8,680 – Rs 11,150	Rs 4,340 – Rs 5,580
Level 4	Rs 25,500	Rs 15,300 – Rs 19,660	Rs 10,200 – Rs 13,110	Rs 5,100 – Rs 6,550
Level 5	Rs 29,200	Rs 17,520 – Rs 22,510	Rs 11,680 – Rs 15,010	Rs 5,840 – Rs 7,500
Level 6	Rs 35,400	Rs 21,240 – Rs 27,290	Rs 14,160 – Rs 18,200	Rs 7,080 – Rs 9,100
Level 7	Rs 44,900	Rs 26,940 – Rs 34,620	Rs 17,960 – Rs 23,080	Rs 8,980 – Rs 11,540
Level 8	Rs 47,600	Rs 28,560 – Rs 36,700	Rs 19,040 – Rs 24,470	Rs 9,520 – Rs 12,230
Level 9	Rs 53,100	Rs 31,860 – Rs 40,940	Rs 21,240 – Rs 27,290	Rs 10,620 – Rs 13,650
Level 10	Rs 56,100	Rs 33,660 – Rs 43,250	Rs 22,440 – Rs 28,840	Rs 11,220 – Rs 14,420

Higher HRA Rates Also Demanded By Employee Unions

The fitment factor is not the only issue that employee unions have raised ahead of the 8th Pay Commission. Several employees’ unions have also asked the commission to revise the existing rates of HRA.

Presently HRA is being paid at 30%, 20% & 10% of basic pay to the employees working in the X, Y & Z categories of cities, respectively.

But some associations of employees proposed increasing rates to 36%, 24% and 12%, and others asked for a much higher revision to 40%, 35% and 30%.

If the government accepts any of these recommendations, the monthly take-home salary of employees could leap significantly beyond just the fitment factor alone.

Salary Alone Will Not Be The Only Impact

The revised basic pay is only a small part of the final fitment factor.

The higher multiplier will also mean a higher House Rent Allowance (HRA), Transport Allowance (TA), future Dearness Allowance (DA) revisions, pension and retirement benefits, as many benefits are linked to the basic salary.

This change is one of the reasons why employees and pensioners are closely monitoring every development to the 8th Pay Commission.

What Employees Should Expect Right Now

The 8th Pay Commission is still in the consultation stage and no final fitment factor or any revised pay structure has been announced by the government. Hence, all the salary and HRA figures available at this stage are only indicative estimates based on different assumptions.

Further discussions on the final recommendations are expected to take place between the Commission and employee organisations and pensioners’ associations.

While it is too early to predict the exact salary hike, one thing is certain that the fitment factor will be the most significant driver of the revision in pay and retirement benefits.

The final multiplier that will be approved by the centre will determine the revised basic salary and will affect HRA, transport allowance, future calculation of DA and pension, and whether the employee is in Level 1 or Level 10. That is why it is the single most watched number for nearly one crore central government employees and pensioners waiting for the 8th Pay Commission recommendations.

Priyanka Roshan

Priyanka Roshan is a business writer and assistant editor at the NewsX website who tracks everything from stock market swings and corporate earnings to personal finance trends and policy shifts. Known for turning fast-moving business developments into sharp, reader-friendly stories, she combines speed, accuracy, and a data-driven approach to break down complex financial news for everyday audiences.

With over 9.5 years of newsroom experience, Priyanka has worked with leading media organisations, including Bussiness, Times Now, and Ping Digital, covering diverse beats such as business, politics, technology, auto, travel, sports, and the world. From live breaking news desks to SEO-led digital storytelling, she specialises in creating engaging content that keeps readers informed without overwhelming them.

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