8th Pay Commission: The Central Government Cabinet has brought good news to central government employees by establishing the 8th Pay Commission. The central government is expected to implement it soon. According to some reports, the benefits of the 8th Pay Commission will begin on January 1, 2026. On the other hand, pensioners will be in for a treat once this Pay Commission is implemented.
It is expected that retired employees’ pensions will increase directly from ₹25,000 to ₹50,000. This will benefit millions of pensioners. Simply put, pensions will double. However, nothing has been officially announced yet. Let’s understand the important points related to the 8th Pay Commission.
What could be the fitment factor?
The central government has cleared the way for the implementation of the 8th Pay Commission. The fitment factor in the 7th Pay Commission is 2.57. It remains to be seen what the fitment factor will be in the 8th Pay Commission. According to some reports, the 8th Pay Commission may propose a fitment factor of 3.68 or higher.
If implemented, this could bring significant benefits to both employees and pensioners. Implementation of the 8th Pay Commission may take some time. The Commission’s panel is expected to review and submit its report within 18 months. Therefore, it is speculated that its recommendations could be implemented in 2027.
Consider this as an example:
Employee’s old basic pay – ₹40,000.
Plus pension (50% of old basic pay): ₹20,000.
This means the new basic pay is the old basic pay × fitment factor.
If the fitment factor is 2.57, the basic pay could be ₹40,000 × 2.57 = ₹1,02,800.
Pension = ₹1,02,800 × 50% = ₹51,400.
How will the pension increase to ₹50,000?
For your information, if the fitment factor is set at 2.0, the pension will double. 25,000 × 2.0 = ₹50,000. That is, if the fitment factor is set at 2.0 in the 8th Pay Commission, the basic pension of ₹25,000 is expected to increase to ₹50,000. No official announcement has been made yet.