There could be a significant difference between the demands of employee unions and the government's final decision. During the 7th Pay Commission, employee unions had demanded a 3.71 fitment factor, but the final fitment factor was 2.57.

For this reason, it's premature to consider 3.83 as a potential new salary. Experts also suggest a fitment factor of around 2.06 to 2.10, depending on different circumstances.

Even with a lower fitment factor, employees' salaries may increase. However, the actual benefits will only be clear after the recommendations of the new Pay Commission and the government's final decision.

Employee unions are citing inflation and rising family expenses as the reason for their significant demand. They argue that the current minimum basic salary of ₹18,000 makes it difficult to meet family needs today.

What is fitment factor?

The fitment factor is the multiplier used to convert the basic salary of the old pay structure into the new pay structure. For example, multiplying a basic salary of ₹18,000 by 3.83 gives ₹68,994, or approximately ₹69,000.

The basic salary of ₹69,000 has not yet been finalized. This figure is based on demands from employee unions.