8th Pay Commission: There is a new update for crores of central employees. More than one crore central government employees and pensioners are keeping a close watch on the developments related to the 8th Central Pay Commission (CPC). Although the government approved the proposal in January 2025, the official notification is yet to be issued and the appointment of the chairman and members of the commission is still pending.
After the notification is issued, the Chairman and members of the Commission will be formally appointed. The 8th Pay Commission, announced on January 16, 2025, is expected to assess the pay structure, allowances, and pensions of central government employees. However, unlike earlier panels, the current process is taking longer, leading to speculation that its implementation may not happen until 2026.
What does fitment factor mean for employees?
A key determinant of the new pay structure will be the fitment factor, which directly impacts the calculation of basic pay and pension. Under the 7th Pay Commission, employees received a minimum basic pay of Rs 18,000 and pensioners Rs 9,000, along with a dearness allowance (DA) or dearness relief (DR) of 58 percent. The fitment factor under the 7th Pay Commission is currently 2.57. For the 8th Pay Commission, if the government chooses a fitment factor of 1.92, the new minimum basic salary could rise to Rs 34,560, while the minimum pension could rise to Rs 17,280. If the factor is revised to 2.08, the minimum basic salary could reach Rs 37,440 and the pension could be Rs 18,720. After the new commission is implemented, DA and DR will become zero.
How the government calculates salaries
The central government may consider using the Ackroyd formula, a method developed by nutritionist Dr. Wallace Ackroyd, to calculate fair wages. This formula estimates minimum wages based on essential living costs, taking into account nutrition, clothing, housing, and other necessities. The aim is to ensure that revised pay scales reflect actual living expenses, especially amid rising inflation and urban cost pressures.
When can the 8th Pay Commission be implemented?
Although the new Pay Commission is being implemented in May, based on the history of the past few years, it can be said that it may be released next year in 2026.