Eighth Pay Commission Updates: These days, a news is becoming increasingly viral on social media, in which it is being claimed that Central Government pensioners will neither get the benefit of the Eighth Pay Commission nor will they be given the benefit of any increase in Dearness Allowance (DA). After this claim, there was confusion and worry among lakhs of pensioners and employees. However, while clarifying the position on this entire matter, the Central Government has termed all such claims as completely wrong and misleading.

The government has clarified that the facilities of pensioners under the Finance Act 2025 have not been withdrawn nor have any benefits related to the Eighth Pay Commission or DA been abolished.

Will retirement benefits end?

It has also been said by the government that the amendments made in the pension rules are not intended to affect the general pensioners. These changes apply only to some special and exceptional cases. Press Information Bureau (PIB), while fact-checking these claims circulating on social media, has made it clear that the Central Government has not made any new policy under which retirement benefits of employees should be stopped after retirement.

Will retired Govt employees stop getting DA hikes & Pay Commission benefits under the Finance Act 2025

A message circulating on #WhatsApp claims that the Central Government has withdrawn post-retirement benefits like DA hikes and Pay Commission revisions for retired… pic.twitter.com/E2mCRMPObO

— PIB Fact Check (@PIBFactCheck) November 13, 2025

PIB’s Fact Check Unit said through a post on social media platform ‘X’ that this message being spread on WhatsApp and other messaging apps is completely fake and has nothing to do with the truth.

According to PIB, the amendment made in CCS (Pension) Rules 2021 is related to Rule 37 (29C). Under this amended provision, action can be taken only against those retired employees of PSU (Public Sector Undertaking) who have been removed from service due to serious misconduct or misbehavior. There is a provision to stop retirement benefits only in such cases.

What changes happened?

This has nothing to do with ordinary employees or pensioners who have served honestly. Despite this, this rule is being misinterpreted on social media and is being said to be applicable to all pensioners, which is completely misleading.

It is noteworthy that recently the formation of the Eighth Pay Commission has been announced. Although it took some time to form its formal committee, its terms of reference have been approved in the cabinet meeting chaired by Prime Minister Narendra Modi last month. The commission has been given 18 months to present its recommendations to the government.

More than 50 lakh central employees and about 69 lakh pensioners are expected to get direct benefits from the Eighth Pay Commission. In such a situation, the government has a clear message that the benefits related to pension and salary are completely safe and there is no need to believe the rumors spreading on social media.

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Eighth Pay Commission Updates: Recently, after the formal notification of Term of Reference (TOR) was issued, the 8th Pay Commission under the chairmanship of Justice Ranjana Desai has started its work. The Commission’s recommendations will have a direct impact on more than 50 lakh central employees and 65 lakh pensioners.

How much can be the fitment factor?

At present, everyone’s eyes are on the fitment factor, because the increase in salary and pension is calculated on this basis. However, its final decision will be taken only after the approval of the Union Cabinet. The commission has to submit its report within 18 months, which will include suggestions ranging from fitment factor to basic pay structure.

Many important aspects like inflation, cost of living and financial condition of the country are considered in determining the fitment factor. This factor was kept at 2.57 in the 7th Pay Commission, and it is believed that it may remain around this in the 8th Pay Commission also.

How much can the salary increase?

Ambit Capital’s report in July estimated that this time the fitment factor could be between 1.83 to 2.46. For example, if the basic pay of an employee is Rs 18,000, then if the fitment factor is 1.83, his salary will increase to Rs 39,940, whereas at the factor of 2.46, it can increase to Rs 44,280. This indicates that a significant increase in the salary of employees is possible in the next pay commission.

It is noteworthy that the formation of the Eighth Pay Commission was announced at the beginning of this year. But this committee was formally announced with a delay of about ten months. In such a situation, when 18 years time has been given to the Pay Commission to send recommendations, it is difficult to implement it from the beginning of next year. It is more likely that it will be implemented from 2027 and along with the arrears, the money will be given to the employees by adding it to their salary or pension.

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8th Pay Commission India: The Central Government has taken a step forward in the direction of the 8th Pay Commission. The Central Government has approved the terms of reference. Former Supreme Court judge Justice Ranjana Prakash Desai has been appointed chairman of the commission.

The commission will submit its report to the government in 18 months. After which, after getting the approval of the Union Cabinet, there will be an increase in the salary of employees and pensioners under the 8th Pay Commission. Since the arrival of this news, employees are demanding information as to how much their salary will increase after the implementation of the new pay commission.

Fitment Factor and other allowances

Under the 7th Pay Commission, the fitment factor was fixed at 2.57 by the government. Now it remains to be seen how much fitment factor the government will keep in the 8th Pay Commission. The fitment factor has a direct impact on the basic salary of the employees. For example, if the basic salary of an employee is Rs 20,000 and the government this time keeps the fitment factor at 2.60, then the new basic salary of that employee will be Rs 52,000. The new fitment factor decided by the government is multiplied by the basic pay of the employee’s old pay commission.

In this way the new basic pay of central employees is decided. How much the salary will increase in the new pay commission mainly depends on the fitment factor. Also, if there is an increase in the basic pay of an employee, it impacts other allowances as well.

For example, rent allowance is directly related to basic pay. That means it will definitely increase. At the same time, the commission can also recommend to the government for increase in transport allowance and other allowances. These will also increase after a few days of government approval.

Will the salaries of employees double?

Nexdigm Director (Payroll Services) Ramachandran Krishnamurthy told the media that, if the basic salary of an employee is Rs 50,000 and under the 8th Pay Commission, the government decides the fitment factor of 2.0, then the basic salary of the employee will become Rs 1 lakh. However, thereafter the revised pay matrix will place the employees in the nearest higher cell. At the same time, if the fitment factor is 2.0, then the basic pension of pensioners getting pension of Rs 30,000 can increase to about Rs 60,000.

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Eighth Pay Commission: After a long wait of about 10 months, the Term of Reference (ToR) of the Eighth Pay Commission was approved in the Union Cabinet meeting chaired by Prime Minister Narendra Modi on Tuesday. This decision has brought great relief to about 50 lakh central employees and 69 lakh pensioners. Earlier, at the beginning of the year, the government had announced the formation of the Eighth Pay Commission and proposed amendments in the salaries and allowances of central employees and pensioners.

The Eighth Pay Commission will be headed by former Supreme Court judge Ranjana Prakash Desai. Along with him, Professor Pulak Ghosh of IIM Bangalore and Pankaj Jain, Secretary, Ministry of Petroleum and Natural Gas have been included as members.

The government has directed the commission to submit its recommendations within 18 months. During this period, the Commission will prepare its report after consulting various stakeholders. Information and Broadcasting Minister Ashwini Vaishnav said that the date of implementation will be decided only after the interim report of the Pay Commission, although it is likely to be effective from January 1, 2026.

What is Term of Reference (ToR)?

The term of reference is actually a framework document of the Pay Commission, in which guidelines and parameters are given for preparing the report. It contains all the terms and conditions on the basis of which the Commission prepares its recommendations.

Its draft is prepared by the Joint Consultative Machinery (JCM), which works under the Finance Ministry. The Union Cabinet gives final approval to the draft. The JCM consists of representatives from several ministries, of which 12 members are selected from the Standing Committee. These members finalize the ToR after discussing it with secretary level officials.

What is the formula for increasing salary – Fitment Factor?

The amount of increase in the salary of the employees completely depends on the fitment factor. This is a coefficient by which the old basic pay is multiplied to arrive at the new basic pay.

For example, the fitment factor in the Seventh Pay Commission was 2.57. That is, if the old basic pay of an employee was Rs 10,000, then the new basic pay became Rs 25,700 (10,000 × 2.57).

Formula:

New Basic Pay = Old Basic Pay × Fitment Factor

How much can the salary increase?

It is believed that in the Eighth Pay Commission, the fitment factor can be fixed between 1.83 to 2.86. If this happens, then it is possible to increase the salaries of central employees by 100 to 180 percent.

The 2.57 fitment factor implemented in the Seventh Pay Commission resulted in a 157 percent increase in pay, increasing the basic pay from Rs 7,000 to Rs 18,000. However, before making the recommendations of the new commission, the government will also consider factors like inflation rate, fiscal deficit and economic situation.

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8th pay commission: More than 1 crore employees and pensioners working under the central government are eagerly awaited for the implementation of the eighth pay commission, which was announced in January 2025. However, the commission has not been formed yet. Here, brokerage firms say that after its implementation, a big impact will be seen on the salary of government employees. In the research note of Ambit Capital and Kotak Institutional Equities, a possible fitment factor and how much the basic pay and salary will sit accordingly.

So much can increase salary

In the July 9 report of Ambit Capital, the fitment factor is estimated to be between 1.83 and 2.46 range. If the fitment factor is kept at 1.82, the salary may increase by 14 percent. At the same time, if it is placed in the range of 2.15, then the salary can increase by up to 54 percent in the salary of 34 percent and 2.46.

Kotak Institutional Equity has estimated a 13 percent increase in salary in the event of fitment factor 1.8. Let us see how much the salary of the central government employee who gets Rs 97,160 (including allowance) salary will increase on the basis of these fitment factories, based on the estimates of the 8th Pay Commission.

1.82 Factor (Ambit Base Case): Salary can increase by 14 percent to Rs 1,15,297.

2.15 Factor (Ambit Median Case): Salary can increase by 34 percent to Rs 1,36,203.

2.46 Factor (Ambit Upper Case): Salary can increase 54 percent to Rs 1,51,166.

1.8 Factor (Estimates of Kotak): Salary can increase by 13 % to about Rs 1,09,785.

Da will be ‘zero’

According to these estimates, the existing dearness allowance will become zero when the new Pay Commission is implemented, as was the last time. In 2016, when the 7th Pay Commission was implemented, the dearness allowance of 125 percent was merged into the basic pay, causing DA to become zero. The fitment factor applies to current basic salary. As soon as the old DA is found in the basic salary, DA will be reset and will become zero. The 2.57 fitment factor was recommended in the Seventh Pay Commission, which increased the minimum basic salary from Rs 7,000 to Rs 18,000. However, after resetting DA, only 14.3 percent hike was found.

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8th Pay Commission: Big news is coming out for central employees. For a long time, discussions about the 8th Pay Commission were going on, now its terms i.e. Terms of Reference (Tor) can be approved soon. After this decision, the path of formal talks will be cleared between the government and the employees regarding salary, allowances and pension.

Expect approval from the government soon

Senior members of the National Council-Joint Consultative Machinery (NC-JCM) have confirmed that the central government may soon flag off Tor. Talking to NDTV Profit, Staff Side Secretary Shiv Gopal Mishra said that we hope that the government will approve soon. This process should not be late anymore.

Demand to change the formula to decide the original salary

In January, when the government sought suggestions on Tor from the staff side, the NC-JCM submitted a draft, which included several important demands. The biggest demand was the new calculation of minimum wages, in which till now there has been talk of making 5 units the basis instead of 3 units. This means that now parents should be decided by considering parents as dependent.

Shiv Gopal Mishra said that today’s social and family structure has changed. Parents’ care is not just moral, but also legal responsibility. He kept this point citing the Maintenance Act, 2022 of parents and senior citizens.

These major demands got support

These special things are included in the demands that have been emphasized by NC-JCM-

Merge of low pay levels – such as Level 1 with Level 2 and so on with Level 3 4 so that the progress of the employees does not stop.

Change in pension – The restoration of communicated pension should be done after 12 years and pension should be reviewed every 5 years.

Mixing dearness allowance to the original salary – The practice in the 5th Pay Commission should be resumed.

At the moment, dearness allowance (DA) has reached 55 per cent and the demand to add it to the original salary is gaining momentum because inflation is continuously affecting the pockets of the common people.

Delay in panel formation, timeline may slip by 2027

Although the 8th Pay Commission was given theoretical approval by the Central Government in January 2024, but its panel has not been constituted till now. The possible date of its implementation has been kept on 1 January 2026, but if the tor and the process of formation continues to be delayed, it can be averted by 2027.

Why is the 8th Pay Commission important?

In India, Pay Commission is formed once every ten years, which affects more than one crore central employees and pensioners. This commission not only affects the salaries, but also directly affects the retirement, pension and standard of living of the employees. Now everyone’s eyes are on the next announcement of the Central Government.

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8th pay commission salary hike: The Modi government at the Center announced the formation of the 8th Pay Commission in January 2024. Since then, about 1.2 crore central government employees and pensioners across the country are eagerly discussing its outline and possible salary increase. The biggest question is how much fitment factor will be and how much salary will increase?

What is a fitment factor?

The Fitment Factor is the Multiplier through which the new Pay Commission is calculated the new basic pay. For example, if an employee has an existing basic salary 18,000 and the fitment factor is 2.86, then his new basic pay can be 51,480. But as big as this figure is seen, there is no real benefit.

Understand from previous pay commissions

The Fitment Factor in the 6th Pay Commission (2006) was 1.86, which increased the salary of 54 per cent on an average. In comparison, the fitment factor in the 7th Pay Commission (2016) increased to 2.57, but the real increase was only 14.2 percent. The main reason for this was that most of the fitments were used only in adjusting dearness allowances (DA).

What can happen this time?

Different employee organizations demand that fitment factor 2.86 be placed in the 8th Pay Commission so that the “real increase in salary and pension” feels. However, according to a report by Financial Express, former Finance Secretary Subhash Garg says that such a huge increase does not seem practically possible. It is estimated that the fitment factor may be fixed around 1.92. If this happens, the minimum basic pay can go up to 34,560. But experts believe that a large part of the fitment factor will again go into inflation adjustment.

How did the real increase in the 7th Pay Commission?

During the 7th Pay Commission, 125 percent dearness allowance was added with the current salary. In that case, only 0.32 of the fitment factor of 2.57 could be considered as “new increase”. Meaning, only 14.2 percent of the total increase was the real advantage, everything else was just the new form of the earlier amount.

What is the Current Status?

The government has recently issued two circulars and started the appointment process for 40 posts for the 8th Pay Commission. Officers are being appointed on deputation from different departments on these posts. Soon the Terms of Reference (Tor) of the Commission will be released, after which the chairman and other members will be appointed. The recommendations of the 8th Pay Commission are to be implemented from 1 January 2026 as the tenure of the 7th Commission is ending on 31 December 2025.

How much financial burden will be on the government?

The 7th Pay Commission had an additional financial burden of 1.02 lakh crore on the government. If the fitment factor is kept more in the 8th Commission, then this burden may increase even more. Therefore, this time the government is taking more thoughts.

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8th Pay Commission Salary Structure: The Central Government has taken steps towards the 8th Pay Commission. The Finance Ministry has started the process of filling 35 posts for the Commission, which is an indication that the government may soon formalize the structure and works of the Pay Commission. This can benefit 47.85 lakh central employees and 68.62 lakh pensioners across the country.

Appointment will be done for 35 posts for commission

According to the news published on Good Returns, according to a circular issued by the Finance Ministry on 17 April 2025, appointments will be made to 35 posts for the 8th Pay Commission, which will be on deputation basis. The tenure of these officers will be effective from the date of the formation of the Commission to its conclusion.

The circular states that these appointments will be made according to the guidelines of the Department of Personnel and Training (DOPT). The names of eligible officers have been sought from the concerned departments.

What can be the big things of the 8th Pay Commission

According to Cleartax report, some important changes can be seen in the 8th Pay Commission. Among them, the increase in fitment factor is the most prominent. Currently the fitment factor is 2.57, which can be increased to 2.85. This will increase the basic salary of all government employees and pensioners.

Apart from this, the current DA can be merged into the new basic salary, which will make dearness allowances and other allowances will be counted afresh. HRA and TA can also be amended. That is, house rent allowance and travel allowance can be re -determined on the basis of new pay scale. At the same time, the Commission can give special suggestions to increase the pension amount and ensure timely payment.

How much can salary increase?

If the basic salary of a government employee is 50,000 and he is working in Delhi (where HRA is 30 percent), then an estimated calculation can occur as follows.

Basic Pay × Fitment Factor (2.85) = 1,42,500

+ HRA (15,000) = 1,57,500 (Estimated gross salary)

These figures are only for example, the government has not yet released any official calculation.

Can be applicable from 1 January 2026

The last i.e. 7th Pay Commission came into force from 1 January 2016 and according to tradition the Pay Commission is applicable every 10 years. In this sense, the 8th Pay Commission can be effective from January 2026.

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8th pay commission salary hike: The Government of India has recently announced the 8th Pay Commission, which is expected to be implemented from 1 January 2026. Under this commission, there is a possibility of significant increase in the salary of central government employees, which will improve their economic condition.

Now in such a situation, many people have the question that how much salary can increase in the years of government employees who have joined the recent years. Let’s find an answer in this news.

First understand how salary grows?

The role of fitment factor in the 8th Pay Commission will be important. The Fitment Factor is a multiplier used to modify the basic salary of employees. This factor was 2.57 in the 7th Pay Commission, but in the 8th Pay Commission it is likely to be kept between 2.28 and 2.86. If the fitment factor in the 8th Pay Commission is 2.86, then the current basic salary will increase from Rs 18,000 to Rs 51,480.

How much will the salary of new employees increase?

Understand this in such a way that until the 8th Pay Commission is implemented, all the jobs under the Central Government, all the joining in all is on the basis of the 7th Pay Commission. Now in such a situation, when the 8th Pay Commission will be applicable, it will be equally applicable to all central government employees, whether they were joined 1 year ago or 10 years ago.

Dearness allowance (DA) merger

Another important change in the 8th Pay Commission will be that the current dearness allowance (DA) will be merged into the basic salary. This decision will further increase the salary of the employees, as the percentage of DA will be connected with the basic salary. At present, employees get 55 percent DA, which is an important part of their basic salary. If it is merged into the basic salary, then their total salary will increase further.

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