The Union Cabinet on Tuesday approved the Terms of Reference (ToR) for the 8th Pay Commission , formally setting the stage for a major revision of salaries and pensions for central government employees. Justice (retired) Ranjana Desai will head the panel, which will consult a wide range of stakeholders over the coming months before submitting its recommendations, including the much-awaited fitment factor for pay hikes.

Fitment Factor: What Level 1 Staff Can Expect

According to research reports by Kotak Institutional Equities and Ambit Capital, the fitment factor — the multiplication unit for salary revision — is expected to range between 1.8 and 2.46. Kotak projected a single fitment factor of 1.8, which would raise the basic minimum salary of Level 1 employees, including peons and att

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