8th Pay Commission: After the announcement of the 8th Pay Commission in January this year, the wait for its formal formation is not ending. However, in the meantime, a report came that the Central Government employees and pensioners who are waiting for the 8th Pay Commission have got a shock. Know what is the whole matter
8th Pay Commission: A report has increased the excitement of the Central Government employees and pensioners waiting for the Eighth Pay Commission. Although this pay commission has not been formed yet, but after the announcement in January this year, Central Government employees and pensioners are calculating how much more money will come in their account now. Now the calculation done by Kotak Institutional Equities regarding this is worrying because if this happens then there will be less increase in the salary of Central Government employees and pension of pensioners.
What is in the report?
Kotak Institutional Equities report has estimated that the fitment factor in the 8th Pay Commission may be less than the previous Pay Commission. The report has estimated the fitment factor to be around 1.8. If this happens, then only 13% increase in salary can be seen. According to the report, the minimum salary can increase from ₹ 18 thousand to ₹ 30 thousand. The decision of the 8th Pay Commission will directly affect about 33 lakh employees of the Central Government and the biggest benefit will be to Grade C employees who are about 90% of the total workforce.
What is decided by the fitment factor?
How much an employee’s basic salary will increase is decided by the fitment factor. This can be easily understood with an example. For example, the fitment factor for the Seventh Pay Commission was fixed at 2.57, so if someone’s basic minimum salary was ₹18,000, it increased to ₹46,260. Note that the fitment factor is always applied to the basic salary.
When will the 8th pay commission be implemented?
The Pay Commission is constituted every 10 years. This time it is to be implemented from January 2026, but after the announcement in January this year, it has not been formally constituted yet. According to the report of Kotak Institutional Equities, the central government still has to select members for the Pay Commission and decide the terms of reference. According to the previous Pay Commission, it takes about one and a half years to file the report and then it takes three to nine months for cabinet approval and then implementation. In such a situation, Kotak estimates that it may be implemented in the last months of next year 2026 or in the early months of the year 2027. However, note that the Eighth Pay Commission will be implemented from January 2026, but in case of delay in its implementation, the pensioners and employees of the Central Government will be paid later with arrears.
