New Delhi: The central government approved the 8th Central Pay Commission in January 2025. However, the government has not yet appointed the chairman and members of the new commission.
Recently, Minister of State for Finance Pankaj Chaudhary told the Rajya Sabha that the official notification regarding the 8th Central Pay Commission will be issued in due course.
The minister said, “Information was sought through letters from the Ministry of Defence, Ministry of Home Affairs, Department of Personnel and Training and all states for the terms of reference of the 8th Pay Commission.” On the appointment of members and chairman of the new pay commission, Choudhary said that they will be appointed after the notification of the 8th Pay Commission is issued by the government.
He said, “The official notification will be issued in due course. The chairman and members of the new Pay Commission will be appointed after the notification of the 8th Pay Commission is issued by the government.”
Current Salary of Central Government Employees
Under the 7th Pay Commission, central government employees get a minimum basic salary of Rs 18,000, while pensioners get a minimum basic pension of Rs 9,000. The maximum basic salary under the 7th Pay Commission is Rs 2,25,000, while employees working in top positions like Cabinet Secretary and others get Rs 2,50,000 per month.
Apart from this, under the Seventh Pay Commission, they get DA/DR at the rate of 55 percent. At 55 percent DA/DR rate, a government employee now gets Rs 27,900 per month (minimum basic salary + DA), while pensioners get Rs 13,950 per month (minimum basic pension + DR).
How is the pay hike determined under the new pay commission?
Under the new pay commission, the salary is revised based on the fitment factor. The fitment factor is a multiplier used by the government to determine the salary and pension of its employees and pensioners. The basic formula to calculate the salary is Revised Pay = Basic Pay × Fitment Factor.
How is the fitment factor calculated?
The revised fitment factor is calculated by applying the selected percentage increase to the base factor. The base factor depends on the rate of dearness allowance (DA) at the time the Pay Commission was in operation. The DA rate is added to the base factor by 1, after which the appropriate percentage increase is applied.
This revised factor is used to calculate the updated salary structure for central government employees. The final percentage and fitment factor will depend on economic conditions, government decisions and recommendations of the commission.
Possible fitment factor for the Eighth Pay Commission
Former Finance Secretary of India Subhash Chandra Garg has estimated that the government may approve a fitment factor of 1.92 or 2.08 under the upcoming pay commission. Meanwhile, Shiv Gopal Mishra, Secretary of the Staff Side of NC-JCM, said that the next pay commission may recommend a fitment factor of 2.86.
It is noteworthy that the Central Government had approved a fitment factor of 2.57 under the Seventh Pay Commission. Keeping all these factors in mind, it can be said that the approved fitment factor can be 1.8, 1.92, 2.00, 2.08, 2.57 or 2.86.
Possible increase in minimum salary on different fitment factors
At half the fitment factor of 1.8, the possible new minimum basic salary for employees can be Rs 32,400 and the new minimum basic pension for pensioners can be Rs 16,200. At the same time, at a fitment factor of 1.92, the minimum salary of employees can be Rs 34,560 and the minimum basic pension for pensioners can be Rs 17,280.
At a fitment factor of 2.00, the minimum salary of the employees is likely to be Rs 36,000 and the minimum basic pension – Rs 18,000. In this way, after applying the fitment factor of 2.08, the minimum basic salary of the employees can reach Rs 37,440 and the minimum basic pension – Rs 18,720.
At the same time, if the government accepts the fitment factor of 2.57, then the new minimum basic salary for employees is expected to reach Rs 46,260 and basic pension Rs 23,130. On implementation of the 2.86 fitment factor, the minimum salary of employees is expected to reach Rs 51,480 and the minimum pension for pensioners is expected to reach Rs 25,740.
