The 8th Pay Commission is an upcoming periodic pay revision for central government employees and pensioners in India. Approved earlier in 2025, it was meant for making adjustments and increases to salaries, pensions, and allowances considering inflation, price rise, and change in economic conditions. The last such pay adjustment of a major kind was the 7th Pay Commission, which became effective from January 2016; the salary structure under it allowed the use of a “fitment factor” to multiply the basic pay before various allowances were added.
What Is Fitment Factor And Why It Matters
The fitment factor is the core of pay commission revisions: it is a multiplier with which the existing basic salary of an employee under the previous pay commission is multiplied so as to arrive at the revised basic pay under the new pay commission. Now the new basic pay becomes the basis for calculation of DA, HRA, pensions, etc. The fitment factor for the 7th Pay Commission was 2.57, thus setting the minimum basic pay at ~₹18,000.
With the 8th Pay Commission, multiple sources have suggested that the fitment factor will see increases, with a few of these sources citing 2.86, while others state it could be either lower or somewhere around 2.46, 2.28, or even 1.80 amid the most conservative estimations. The larger the factor, the bigger the hike in salaries.
Expected Salary And Pension Hike
With a higher fitment factor, the minimum basic salary under the new structure may witness some hikes. For instance, assuming a factor of ~2.86, a basic pay of ₹18,000 may go up to around ₹51,480-one jump of almost 186%! Similar hikes are expected at other levels (Level 2, 3, etc.). Pensions are also increased. For instance, a pension of ₹9,000 could increase to about ₹25,740 with the same factor.
Timeline & Uncertainties
The implementation of the new structure is expected to start around January 2026, but there are fears it could get delayed due to procedural requirements like setting up the Terms of Reference, making appointments, and seeking consultations from state governments and employee unions. Besides, while it is commonly expected that subsequent to the formation of the new pay commission, DA (Dearness Allowance) will be merged into the basic pay, this is not yet confirmed. If that were to happen, a rise in the basic pay may show less net increase, once the DA is reset, from that on paper.
The Government Employees And Pensioners Must Know
- Keep an eye on government official notifications; much is still under negotiation.
- Learn about your pay level, allowances, and how the commission may change them.
- Fitment factor will be such that the announced one (once declared) shall determine how much benefit the case of one and all will accrue.
- Do remember that take-home pay can be subjected to resettlement or even to reductions in net charges, even if those with a higher fitment factor are generally compensated-at least at the levels of DA rates, or unlike the allowances) hence outweigh the resets mentioned here in the parenthesis.
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