If you or anyone in your family is a central government employee, then this news is very important for you. More than 50 lakh employees and 65 lakh pensioners have high hopes from the 8th Pay Commission. It was being speculated that it would be implemented from January 2026, but a report has given a shock to these hopes. According to a report by Kotak Institutional Equities, this time the fitment factor may be only 1.8, which will increase the salary by only 13%. This is even less than the 14.3% increase of the 7th Pay Commission, which may be disappointing for the employees.
Why is the fitment factor important
The fitment factor is the multiple that is used to increase the basic salary. This is the basis for the increase in salary and pension of any employee. If the fitment factor in the 8th Pay Commission was 2.86, then the salary of the employees could have increased by 40 to 50%. But if it remains 1.8, then the increase in salary will be limited to only 13%, which will be a big setback for the employees.
Last DA hike of the 7th Pay Commission
According to CPI-IW data, the dearness allowance (DA) of employees can increase by 3% in September or October. However, it will be considered applicable only from July 1, 2025. With this increase, DA will increase from 55% to around 58%. This DA hike, which will come into effect from July 1, will be the last hike under the 7th Pay Commission, as it will become zero in January 2026, and new DA will be available under the 8th Pay Commission.
When will the 8th Pay Commission be implemented
The government can implement the 8th Pay Commission from January 2026, but its actual launch may be delayed till the financial year 2027. So far, no work has been completed on the appointment of the committee for the commission and its terms. When it is implemented, the employees will get the arrears of the increased salary from January 2026, only after which the payment of salary and pension will start.
How much will the central employees benefit
Depending on the final fitment factor, the salary of the employees can increase from 13% to 50%. Due to rising inflation, delay in implementation, and the status of budget allocation not being clear yet, the expectations of the employees are low. The chairman and terms of the commission have not been decided yet, due to which uncertainty remains.
This uncertainty remains a cause of concern for central employees and pensioners, as they were expecting a big increase in their salaries.