The long-awaited update on the Central Government’s fitment factor hike has once again brought excitement among government employees. If implemented, this revision could significantly increase the minimum salary of central employees, offering a major relief amid rising inflation. Here is the complete detail of how the fitment factor hike will affect salaries and what employees can expect in 2025.
What Is the Fitment Factor?
The fitment factor is the multiplication number used to calculate the revised basic pay when a new pay commission is implemented. Currently, government employees receive their salary based on a fitment factor of 2.57. Employee unions have been demanding an increase to 3.00 or even 3.68, which would substantially raise the minimum wage.
Minimum Salary May Rise From ₹18,000 to ₹44,280
If the fitment factor is increased to 3.68, the minimum monthly salary could witness a massive jump.
Here’s how the salary change is calculated:
Salary Calculation Based on 3.68 Fitment Factor
- Current minimum basic salary: ₹18,000
- After revision at 3.68:
₹18,000 × 3.68 = ₹66,240 (Gross) - Effective take-home after deductions: ₹44,280 approx.
This means an employee currently getting ₹18,000 basic pay may receive more than ₹44,000 per month as take-home salary after the hike is implemented.
Why Is the Fitment Factor Hike Being Considered?
Employee unions have continued to push for a rise due to increasing cost of living, expensive medical care, and inflation affecting household budgets. The 7th Pay Commission was implemented years ago, and there has been no major salary upgrade since then. The government is reportedly reviewing the demands, and discussions are anticipated to move forward.
Expected Benefits for Employees
If the hike gets approved, central government employees will see:
- Higher basic salary
- Increased HRA, DA, TA, and other allowances
- Bigger pension benefits for retirees
- Improved financial stability amid rising inflation
The fitment factor hike would affect nearly 52 lakh employees and 65 lakh pensioners, making it one of the most significant pay revisions in recent years.
When Will the Final Decision Come?
While no official date has been announced, sources suggest that discussions may take place ahead of the upcoming financial year. Any hike will likely be reflected in salary slips soon after approval.