8th Pay Commission : The Union Cabinet announced the establishment of the 8th Pay Commission in January 2025 to revise the salaries of central government pensioners and employees.
The new 8th Pay Commission may come into effect from January 1, 2026. However, there is also speculation that it may be delayed and may take longer than expected. Let us tell you that the government has not yet given any details on the percentage of salary increase under the newly constituted Pay Commission.
Demand for 2.57 fitment factor
However, according to a Business Today report, people are expecting that the minimum basic salary in the 8th Pay Commission will increase from the current ₹18,000 to ₹51,480. According to other reports, the National Council-Joint Consultative Machinery (JCM-NC) had sought a fitment factor of at least 2.57 (which is the same as the 7th Pay Commission) or more. Let us tell you that the fitment factor is a calculation system through which the salary of government employees is decided. 2.57 fitment factor means a salary increase of 157 percent.
8th Pay Commission Salary Calculation
For example, if the commission recommends a fitment factor of 2.86, this will increase the basic pay of government employees from ₹18,000 to ₹51,480.
This calculation is done by using the simple formula: 2.86 * current basic pay.
Using the formula, an employee currently earning a basic salary of ₹20,000 may see an increase to ₹46,600 – ₹57,200. Additionally, the minimum basic salary is anticipated to exceed ₹40,000, along with revised allowances and perks.
The minimum pension, in such a scenario, would rise from ₹9,000 to ₹36,000. The same formula is used to calculate the pension.
Under the proposed changes, government employees will see their salaries adjusted based on the fitment factor. If the factor is set at 2.0, the basic salary could rise to ₹36,000, reflecting a 100% increase. With a fitment factor of 2.08, the lowest basic salary may rise to ₹37,440 (a 108% surge). Pensioners will also benefit, with the minimum pension expected to increase to ₹18,720.
Lakhs of employees will benefit
The Centre’s 8th Pay Commission move is expected to benefit around 50 lakh central government employees, including defence personnel. The Pay Revision Commission will also benefit around 65 lakh central government pensioners, including defence retirees.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice.
