The expectations of central government employees and pensioners are high around the Eighth Central Pay Commission. While the pay and pension of about 50 lakh employees and 69 lakh pensioners are expected to be revised, the final recommendations and the timeline for implementation are still unclear.
At the heart of this discussion is the fitment factor, a multiplier by which the current basic pay or pension will be fixed at the new rate. The higher the fitment factor, the greater the increase in pay and pension; if it is lower, the increase will be limited. So this one number has a big impact on monthly income and long-term benefits.
What is the possible range?
According to CA Manish Mishra, founder of GenZCFO, the fitment factor can be between 1.9 and 2.8-3.0. In comparison, in the Seventh Pay Commission, it was 2.57. The final decision on this number in the Eighth Commission will determine the amount of additional income.
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Impact on salaries and pensions
A high fitment factor will see a significant jump in salaries and pensions. A relatively low factor will improve the structure even if the increase is moderate. That is why unions and pensioner organizations are keeping a close eye on every update.
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When will the extra money come in?
The commission may be effective on paper from January 1, 2026. However, in reality, the extra salary is more likely to come into the account by the end of 2026 or in the financial year 2026-27 – such delays have been seen in previous commissions as well.
At the moment, everyone is waiting for the government’s approval and the announcement of the final fitment factor – this decision will determine the generosity of the Eighth Pay Commission.