8th Pay Commission: The central government has announced the 8th Pay Commission. However, the appointment of its chairman, members and detailed terms and conditions (ToR) have not been decided yet. After the implementation of this commission, more than 1 crore central employees and pensioners will benefit. According to media reports, the recommendations of the 8th Pay Commission are expected to be submitted by the end of 2025 and it can be implemented from January 2026.
However, it may take time to implement it. It will depend on the completion of the 8th Pay Commission report, submission to the government and approval of the recommendations as to when it can be implemented.
These reports say that after approval, the recommendations of the 8th Pay Commission can be implemented in the financial year 2027, which can increase the salary and pension of government employees and pensioners by 30-34%.
However, the 8th Pay Commission has not been constituted yet. But, many media reports are speculating that the fitment factor could be between 1.83 to 2.46. The fitment factor is a multiplier that is used to increase the basic salary when the new pay commission is implemented.
A report by financial services firm Ambit Capital said, “Based on the salary hike in previous pay commissions, the government can fix the fitment factor between 1.83 to 2.46.”
What does fitment factor mean?
The fitment factor is the multiplier that the government uses to increase the basic salary of employees under the new pay commission. This determines the new basic salary.
For example, if the current basic salary of an employee is Rs 18,000 and the fitment factor is 2.0 (for example), then the new basic salary will be Rs 36,000 (18,000 × 2.0). This does not include allowances like HRA or DA, which are added separately and further increase the total salary.
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