8th Pay Commission: The Government of India has recently declared the formation of the 8th Pay Commission, anticipated to enhance the salaries and pensions of approximately 5 million central government employees and 6.5 million pensioners. This commission is projected to take effect from January 1, 2026; however, the processes related to its establishment and implementation are still underway.
The announcement regarding the 8th Pay Commission was made on January 17, 2025, with the completion of its formation expected by April 2025. The commission will commence its operations following the conclusion of the 7th Pay Commission. Nonetheless, some reports have indicated the potential for delays in its implementation.
A critical aspect determined by the Pay Commission is the fitment factor, which influences salary adjustments. In the 7th Pay Commission, the fitment factor was set at 2.57, resulting in an average salary increase of 23.55 percent. According to various media sources, the fitment factor for the 8th Pay Commission may range from 2.28 to 2.86, potentially resulting in a salary increase of 40 to 50 percent.
What is predicted
Should the fitment factor reach 2.86, the minimum basic salary could approximate Rs 51,480. Additionally, pensioners are expected to benefit from an increase in their pensions, thereby enhancing their financial well-being.
What actually can happen
Former Finance Secretary Subhash Garg asserts that requesting a fitment factor of 2.86 is akin to seeking the impossible. He suggests that the government should maintain the fitment factor at approximately 1.92.
If the fitment factor remains at around 1.92, it is reasonable to conclude that employees will not receive the anticipated salary increase.