The tenure of the 7th Pay Commission is now in its final stages. As the December 31, 2025, deadline approaches, the buzz about the 8th Pay Commission has intensified among the families of approximately 11.9 million central government employees and pensioners nationwide. Everyone has a single, pressing question: will the government set the fitment factor at 2.15 in the new year? If so, how drastic will the basic salaries of peons to senior officials be? In this article, we will examine the potential salary structure of the 8th Pay Commission and the mathematics of the fitment factor in detail.
Salaries Will See a Drastic Increase
The entire responsibility for increasing the salaries of government employees rests on this ‘Fitment Factor’. Simply put, it’s a magical number or multiplier. When your current basic salary is multiplied by this set number, your new basic salary is determined.
Experts believe that this time, the government may implement a fitment factor of 2.15, taking into account inflation, the cost of living, and the state of the government treasury. For example, if an employee’s current basic pay is ₹50,000 and the fitment factor is set at 2.15, their new basic salary will directly increase to ₹1,07,500. This increase will not only provide financial security but also significantly strengthen the employee’s standard of living. This factor is determined based on economic factors and private sector salary standards.
Whose salary will increase by how much
The pay matrix will be completely transformed after the implementation of the new Pay Commission. While the salaries of entry-level employees are expected to more than double, the salaries of senior officers may also see record-breaking increases.
Level 1 employees, who currently earn a basic salary of ₹18,000, will see their new salary exceed ₹38,700. Similarly, the basic pay of Level 6 employees could increase from ₹35,400 to ₹76,110. For senior officers, Level 15 officers’ basic salary could jump from ₹1,82,200 to around ₹3,91,730. The basic pay of officers at the highest level, Level 18, is projected to increase from ₹2.5 lakh to ₹5,37,500.
What will be the impact on DA, HRA, and pension
When basic pay changes, the impact isn’t limited to just the basic salary. In fact, dearness allowance (DA), house rent allowance (HRA), and post-retirement pension are also calculated on this basic salary. This means that if the fitment factor of 2.15 is approved, the increase in allowances will take employees’ total take-home pay to a new level.
Experts say this could prove to be the biggest salary hike ever, as the increase in basic salary also significantly increases long-term benefits like provident fund (PF) and gratuity. This will also provide significant relief to pensioners, as their monthly pension will also increase proportionately.
When will the new system be implemented
Technically, the 7th Pay Commission’s term ends on December 31, 2025. This means that the new rates should be effective from January 1, 2026. However, government processes and recommendations often take time to receive final approval. History shows that the commission’s recommendations sometimes take one to two years to be implemented.
But the saving grace for employees is that even if the announcement is delayed, the government implements it retrospectively. In such cases, employees receive the increased amount in the form of arrears, a lump sum, which results in significant savings.