In 2016, the 7 th Pay Commission raised the minimum basic salary by 2.57 to an amount of 18,000, with a fitment factor of 2.57. Unions insist on an increased rate to 3.68 in 2025, however no official change has been passed yet.
Why Fitment Factor Matters
Fitment factor is used to multiplicate the basic pay to reflect salaries due to inflation and living expenses. The higher factor raises take home pay, which will affect more than 48 lakh employees and over 65 lakh pensioners covered by the 7th CPC.
Union Demands for Hike
The unions of employees under the banner of the National Council (JCM) demand a 3.68 fitment factor in 2025 on the grounds of increased costs. This would increase the minimum wage to ₹26,000 and it would be quite a relief in terms of finances.
Government’s Stance
Instead of a fitment factor increase by 2025 the Finance Ministry has been preoccupied with an 8th CPC formation. The current 2.57 factor remains, with Dearness Allowance (DA) at 55% as of January 2025.
Impact on Salaries
The basic pay of 18,000 would be raised by 8,000 a month to 26,000 by using a 3.68 fitment factor. The new basic would be 72,000 at a salary of 50,000 and this increase in earnings would be huge.
Pensioners’ Benefits
Pensioners who had a ₹9,000 basic level of pension would have improved to ₹13,000 with a factor of 3.68. Such an adjustment, along with DA, assures the retirees that they have buying power during inflation.
Expected Timeline
There is no confirmed hike in fitment factors in 2025 given that the 7th CPC will expire in December. As of 2026, the 8th CPC, which was accepted in January 2025, could redefine salary frames, which could eclipse the existing demands.
Salary and Pension Projections
| Category | Current Basic (₹) | Fitment 2.57 (₹) | Fitment 3.68 (₹) |
|---|---|---|---|
| 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 |
Stay Informed
Although unions insist on 3.68 fitment factor, there is no increase that is assured in 2025. The employees are to pay attention to the changes on dopt.gov.in and plan the possible changes of the 8 th CPC in 2026.
Also read: LIC Smart Pension 2025: Secure Your Retirement with Fixed Annuity & Emergency Access