New Delhi, April 17 -- Set up by Prime Minister Narendra Modi last year, the 8th Pay Commission is set to make key decisions on salary revisions and fitment factor, which will outline the updated compensation for central government employees and pensioners. Amid the debate, much of the focus is now on the fitment factor, which forms a crucial element.

Fitment factor is the multiplier that converts old basic pay into revised basic pay. A higher factor in this case means a sharper jump in salaries and pensions. It also influences gratuity-linked calculations, provident fund contributions and other inputs linked to basic pay.

Employee unions have pushed for a fitment factor going as high as 3.83, while brokerage estimates have suggested a ...