More than 33 lakh central government employees and over 66 lakh pensioners are waiting for the 8th Pay Commission to be implemented. If they are hoping for a big increase in salary and pension, they might be disappointed.
According to a recent report by Kotak Institutional Equities, the fitment factor in the 8th Pay Commission may be 1.8. This could lead to a salary increase of only around 13%. This information was shared in a report by the Economic Times.
How Much Salary Increased in the 7th Pay Commission
A report by Ambit Capital said that the current 7th Pay Commission, which will end in December 2025, gave a 14.3 percent increase in salary. A recent report by Kotak Institutional Equities says that the fitment factor in the 8th Pay Commission may be around 1.8.
The real increase in salary or pension of central government employees fully depends on the fitment factor. This is also called the multiplier. It is used to calculate the new basic pay based on the old basic pay.
For example, in the 7th Pay Commission, the fitment factor was fixed at 2.57. Because of this, the basic pay increased from ₹7,000 to ₹18,000 per month.
How Much Salary Increased in Past Pay Commissions
It is important to understand that the 2.57 fitment factor does not mean the full salary becomes 2.57 times higher. It applies only to the basic pay part.
In the past, the 2nd Pay Commission gave a 14.2 percent increase in real salary. The 3rd Pay Commission gave a 20.6 percent rise. The 4th Pay Commission gave a 27.6 percent hike. The 5th Pay Commission gave a 31 percent increase. The 6th Pay Commission gave the highest rise of 54 percent. The 7th Pay Commission gave a 14.3 percent increase in real salary.