There is a great news for Central Government Employees and Pensioners. The Union Cabinet has approved the formation of the 8th Pay Commission, which is to be implemented from January 1, 2026. However, it may take some time to come on the ground. The commission has been formally constituted, but more than 1.10 crore government employees and pensioners are eagerly waiting for the salary hike as per the new pay scale. This is a historic decision that will directly affect the lives of millions of families in the country, increase their purchasing power and give impetus to the economy.
How much can the salary increase in the 8th Pay Commission
According to a report by Ambit Institutional Equities, the 8th Pay Commission is expected to submit its recommendations by the end of 2025. However, its actual implementation will be possible only in the financial year 2026-27 based on policy approval. It is believed that the salary of central employees may increase by 30-34 percent in the 8th Pay Commission. This increase will put an additional burden of ₹ 1.8 lakh crore on the government treasury. But this is a necessary investment for the government to keep the morale of the employees high.
How many people will get the benefit of this salary increase
The direct benefit of the proposals of the 8th Pay Commission will be available to about 44 lakh employees of various departments and ministries of the central government. Apart from this, about 68 lakh pensioners will also come under its purview. That is, more than one crore people will benefit from this new pay scale, which will improve the economic condition of a large section of the country.
What is the important role of fitment factor in salary hike
Fitment Factor will play the most important role in salary hike under the 8th Pay Commission. It is an important tool used in pay revision, which is used to adjust salary and pension based on economic factors such as inflation and fiscal sustainability. The fitment factor ensures that the salary hike of the employees is in line with both their needs and the financial capacity of the government. This ensures a fair and sustainable salary hike for the employees.
What can be the fitment factor for the 8th Pay Commission
A fitment factor of 2.57 was used for the 7th Pay Commission. At the same time, the fitment factor for the 8th Pay Commission is expected to be between 1.83 to 2.46. If we look at the minimum fitment factor (1.83), then an employee with a basic salary of ₹ 18000 can get a salary of ₹ 18000 X 1.83 = ₹ 32,940. Whereas, if we look at the maximum fitment factor (2.46), it can be ₹ 18000 X 2.46 = ₹ 44,280. This is an estimated figure and the actual figures will be known only after the recommendations of the commission.
In whose government was the 7th Pay Commission formed?
The 7th Pay Commission was constituted in 2014 by the UPA Government led by Manmohan Singh. Its recommendations were implemented from January 1, 2016. Let us tell you that the Central Government implements a new Pay Commission every 10 years to increase the salaries of employees and pensioners. This is an established tradition that ensures improvement in the lifestyle of government employees.