8th Pay Commission: The Eighth Pay Commission has become a hot topic among central employees lately. The central government set up the Eighth Pay Commission last year. After its establishment, the recommendations are expected to be put into action within 18 to 20 months.
This Pay Commission will not only address the salary structure for central employees but will also make decisions regarding allowances, pensions, and other benefits. A major concern for central employees is whether their salaries will experience a larger increase compared to the 7th Pay Commission. Let’s take a closer look.
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In fact, employee organizations are advocating for the salary structure to be determined using the fitment factor, similar to the 7th Pay Commission. They are pushing for an increase to ensure a substantial rise in employees’ salaries. However, experts suggest that the ultimate salary increase will heavily rely on the dearness allowance (DA) level at the time the new pay structure is rolled out.
This is why both the fitment factor and DA levels will be critical in shaping the salaries of employees under the 8th Pay Commission. Generally, when a new Pay Commission is introduced, the accumulated DA is added to the basic salary, and the new salary is calculated based on that.
What was the formula used in the 7th Pay Commission?
The 7th Pay Commission introduced a fitment formula of 2.57. At that time, the minimum basic salary was Rs 7,000, which, when multiplied by 2.57, was raised to Rs 18,000. This applied to Level 1 employees. Likewise, the amounts varied for employees at different levels. Now, the pressing question regarding the 8th Pay Commission is what this formula will be and how much of a salary increase employees can expect.
However, many experts believe that it may be difficult to get a very high fitment factor in the 8th Pay Commission. On the other hand, employee organizations have demanded a much higher fitment factor this time. The Federation of National Postal Organizations (FNPO) has proposed a fitment factor ranging from 3.0 to 3.25 for different levels. According to this, a fitment factor of 3.0 has been suggested for employees in levels 1 to 5, 3.05 to 3.10 for levels 6 to 12, while a fitment factor of up to 3.25 has been suggested for top level officers.
The government announced the formation of the 8th Pay Commission in January 2025. The committee was formed in November. Typically, the commission takes 18 to 24 months to prepare its recommendations. Meanwhile, the new Pay Commission launched a website in February. The Pay Commission has sought suggestions from employees and other stakeholders, sparking discussions about salary increases.