Lakhs of Central Government employees and pensioners are eagerly waiting for the 8th Pay Commission. Although this pay commission has not been formed yet, since the announcement in January this year, central employees and pensioners have been calculating how much more money will come into their accounts now. According to the report, if this happens, then the salary of central government employees and the pension of pensioners may see less increase than in the previous pay commissions.
What is in Media report
The media report has estimated that the fitment factor in the 8th Pay Commission may be less than in the previous pay commissions. The report has estimated the fitment factor to be around 1.8. If this happens, employees may see a salary increase of only 13%. According to the report, the minimum salary may increase from ₹ 18,000 to ₹ 30,000. 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 account for about 90% of the total workforce.
What does the fitment factor decide
How much an employee’s basic salary will increase is decided by the fitment factor. This can be easily understood with an example. The fitment factor for the 7th Pay Commission was fixed at 2.57. Therefore, if someone’s basic minimum salary was ₹ 18,000, it increased to ₹ 46,260. It is worth noting that the fitment factor always applies to the basic salary. If the fitment factor remains 1.8 this time, the basic salary of ₹ 18,000 will be only ₹ 32,400 (18,000 x 1.8), which is much less than the previous increase.
When will the 8th Pay Commission be implemented
The Pay Commission is usually constituted every 10 years. This time, it is to be implemented from January 2026, but even after the announcement in January this year, its formal formation has not been done yet. According to the report of Kotak Institutional Equities, the central government is yet to select the members of the Pay Commission and decide the Terms of Reference.
According to the experience of previous pay commissions, it takes about one and a half years to submit the report and then three to nine months for cabinet approval and implementation. In such a situation, Report estimates that the 8th Pay Commission may be implemented in the last months of next year, 2026, or the early months of the year 2027.
However, it is important to remember that the 8th Pay Commission will be applicable from January 2026, but in case of delay in its implementation, Central Government pensioners and employees will be paid with arrears later.
Reaction of employees and pensioners
Media reports have raised concerns among Central Government employees and pensioners. While they were expecting a good hike from the 8th Pay Commission, a possible reduction in the fitment factor may affect their financial plans. Employee unions may expect clarification from the government on this matter.