A big news related to the 8th Pay Commission is coming out, which can provide great relief to crores of central employees and pensioners. The central government has started preparing to set up the 8th Central Pay Commission.

Actually, the current pay structure is ending in December 2025, but the government has already become active towards the appointment of the new commission. According to sources, recruitment for 42 posts including the chairman in the commission is going to be held soon and it is likely that the next month of this new Pay Commission will start the formal functioning.

Fitment Factor of 8th Pay Commission

The most important thing of the Pay Commission is “Fitment Factor”. This is a formula from which a new basic salary of government employees is fixed. Simply understand, new basic salary = old basic salary × fitment factor. This factor in the 7th Pay Commission was 2.57, that is, if your basic salary was 10,000, then according to the new Commission it had increased to 25,700.

It is now discussed that this factor in the 8th Pay Commission can increase to 2.86. If this happens, the current basic salary of 20,000 of an employee can increase to 57,200. That is, the benefit of more than 37,000 directly.

Whose salary will increase

The effect of this change will be clearly visible on the employees’ pockets. Below are some projected figures that show what can be the effect of the change of fitment factor on different basic salary. For example, if your old salary was 30,000, it was 77,100 in the 7th Pay Commission, but the same salary in the 8th Pay Commission can go up to 85,800. At the same time, some staff organizations are demanding that the fitment factor be increased to 3.68, so that the old salary of 30,000 can reach 1,10,400.

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8th pay commission fitment factor: The Modi government made a big announcement in January 2024 that after completion of the tenure of the 7th Pay Commission in December 2025, a new i.e. 8th Pay Commission will be set up. As soon as this was confirmed, a question arose among crores of central employees and pensioners across the country, how much salary would increase this time? So far, the government has not announced the names of the Chairman and other members of the 8th Pay Commission, but the discussions are in full swing. Along with this, there is a discussion that what will be the fitment factor and whether DA (dearness allowance) will be merged in the basic pay or not.

How does fitment factor apply?

Now let’s talk about what this fitment factor is. Actually, it is a kind of multiplier, through which a new salary is fixed by multiplying the old basic salary. This factor is decided keeping in mind DA i.e. dearness allowance and current economic conditions. Its aim is that all employees get equal and equitable increase.

Talking about some of the last few pay commissions, it has been seen the trend that before increasing the salary, DA is merged into the basic salary and after that the fitment factor is implemented on that total yoga.

Understand by example

For example, when the 7th Pay Commission came into force in 2016, the employees were getting 125 percent DA. The Commission suggested a fitment factor of 2.57. That is, if the basic salary of an employee was 10,000, then 125 percent DA i.e. 12,500 is added to 22,500. The new salary was fixed at 25,700 by adding a real increase of 14.22 percent on this. That is, fitment factor = 25,700 / 10,000 = 2.57.

A similar pattern was seen in the previous pay commissions. The DA was around 74 per cent at the time of the 5th Pay Commission (1996) and the Fitment Factor 1.86 was kept. The DA was around 115 per cent in the 6 Contract Commission (2006) and the Fitment Benefit was 1.86x, including a concept of grade pay. In the 7th Pay Commission (2016), DA was 125 percent and the Fitment Factor 2.57 was fixed.

Fitment Factor 3.0 should be kept

This makes it clear that every time the Pay Commission is included in the basic pay and creates a complete salary base and then a new salary is fixed by adding one percent increase on it. In view of this trend, it is expected that the 8th Pay Commission will also move forward on this formula.

Currently, it is also under discussion that DA may increase very little for July-December 2025, as the recent inflation rate has seen stability. In such a situation, the staff organizations are expecting that this time the fitment factor should be kept at least 3.0 or more so that the benefit of the actual increment can be given.

Expected from 8th Pay Commission

Overall, the 8th Pay Commission is coming with great hope for crores of employees. If the government repeats the previous traditions and merges the DA in the basic and applies the appropriate fitment factor, then it can bring a big and positive change in the salary. It remains to be seen how much the government meets the expectations of the employees.

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8th pay commission salary hike: Ever since the announcement has been made about the 8th Pay Commission, government employees are worried about how much their salary will increase when the commission is implemented. But, now their wait seems to be over. In fact, Goldman Sachs has made an estimate about this, which shows how much the salary of government employees will increase after the implementation of the 8th Pay Commission.

What does Goldman Sachs report say

According to the report of Goldman Sachs, after the implementation of 8th Pay Commission, the salary of government employees can increase by 14,000 to 19,000. Along with this, Goldman Sachs has estimated that this increase may be applicable in 2026 or 2027.

Understand this in easy language

Currently, the average salary of central government employees is Rs 1 lakh per month (before tax). After the 8th Pay Commission, it can increase by 14 to 19 percent. Three possible plans have been made for this. If the government holds a budget of 1.75 lakh crore (for 50 percent salary and 50 percent pension increase), then the average salary will increase by Rs 14,600 per month. At the same time, if a budget of 2 lakh crore is kept, then the salary will increase by Rs 16,700 per month. Whereas, if 2.25 lakh crore are allocated, then employees will get an increase of 18,800 per month in salary.

50 lakh employees and 65 lakh pensioners will benefit

More than 50 lakh government employees and 65 lakh pensioners will directly benefit from 8th Pay Commission. Earlier, under the 7th Pay Commission, the government spent 1.02 lakh crore.

When will the 8th Pay Commission apply?

On 16 January 2025, the Union Cabinet approved the 8th Pay Commission. However, the names of the chairman and members of the Commission have not been decided yet. The Commission report may apply in 2026 or 2027.

Fitment factor has a tremendous boom in salary

The fitment factor is fixed under the Pay Commission, which increases the salary. It was 2.57 in the 7th Pay Commission and now it is being demanded that it be increased further. If the fitment factor remains 2.57, the minimum salary will increase from 18,000 to 46,260. Whereas, the minimum pension will increase from 9,000 to 23,130. If the fitment factor 1.92 is fixed, as is estimated by former Finance Secretary Subash Garg, the minimum salary will be 34,560. Although the demand of employees was from 2.86 fitment factor, it can be challenging for the government to implement it.

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8th pay commission salary hike: Ever since the Modi government has announced the formation of the 8th Pay Commission, about 36.57 lakh government employees and 33.91 lakh pensioners are sitting in the hope that their salary and pension will increase significantly since the implementation of this pay. However, there are many employees in this country, which we consider government, but this pay commission will not be applicable to them.

That is, after the implementation of the 8th Pay Commission, where the salary of lakhs of employees will increase, there will be no increase in salary of employees working in these departments. Let us explain to you in detail about these departments.

First understand how much salary will increase from the 8th Pay Commission

Under the 8th Pay Commission, the increase in salary of government employees will be determined mainly on the basis of fitment factor and allowances. According to media reports, the fitment factor can be between 1.92 and 2.86. In an easy language, consider it in such a way that if the current basic salary of an employee is Rs 20,000 and the fitment factor is 2.86, then the new salary of the employee will be 20,000 × 2.86 = 57,200 rupees. Let us tell you, according to the 7th Pay Commission, at present the minimum basic salary is 18,000, which can be potentially increased to 51,480, if the fitment factor 2.86 is applied.

These people will be out of the 8th Pay Commission

When any pay commission is applicable, it first applies to central government employees. After this, the state governments apply it to themselves and this benefits the government employees of the state government. However, the Pay Commission does not apply to the High Court, Supreme Court judge, Public Sector Undertaking (PSU) or employees of any autonomous body. Actually, the rules of salary and allowance are different for these people and only those rules apply to them.

When will the 8th Pay Commission come into force

Given the deadline of the previous pay commissions, the possible deadline for the implementation of the 8th Pay Commission can be estimated. The recommendations of the 6th Pay Commission came into force in 2006, while it was formed in 2005. At the same time, the 7th Pay Commission was formed in February 2014 and recommendations were implemented from 1 January 2016. While the 8th Pay Commission was announced in January 2025. At the same time, there is a plan to implement it from 1 January 2026. However, according to experts, there may be a delay in implementing it due to lack of funds in Tor and budget.

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Ever since the announcement of the 8th Pay Commission, the discussion has intensified on the ‘Fitment Factor’ on the basis of the amendment in the salary and pension of the central government employees and pensioners.

According to reports, the fitment factor in the 8th Pay Commission can be between 1.92 and 2.86. Actually, the fitment factor is a multiplier, which the government uses to revise the salaries and pension of the employees. However, there is also a misconception about the fitment factor.

What is the real meaning of fitment factor?

It is a misconception that if the fitment factor in the 8th Pay Commission is 2.86, then the salary and pension will increase equally. Actually, the fitment factor applies only to the basic salary, not to gross salary.

Why does salary and pension increase not in proportion to fitment factor?

According to the report of Financial Express, the fitment factor does not show much effect on the gross salary, as many other components are also included in the total salary. While revising salary and pension, the pay panel takes into account many other aspects, such as merging DA with basic pay and adding or removing many allowances. This ensures that the calculation of the fitment factor will be applicable only to the basic pay.

Understand it in easy language that the fitment factor in the 7th Pay Commission was 2.57, which increased from Rs 7,000 to Rs 18,000. But, when it comes to the real increase, the salary and pension of the level 1-3 employees increased by an average of 15 percent. However, the employees of Level 4-10 got more increase.

At the same time, the fitment factor in the 6th Pay Commission was 1.86, but the salary and pension increased by 54 percent. It is clear that having high fitment factor does not mean that the total salary will increase equally.

Actual increment in previous pay commissions (percent)

Second Pay Commission: 14.2 percent

Third Pay Commission: 20.6 percent

Fourth Pay Commission: 27.6 percent

Fifth Pay Commission: 31.0 percent

Sixth Pay Commission: 54.0 percent

Seventh Pay Commission: 14.3 percent

When will the 8th Pay Commission be set up?

Now that the date of formation of the 8th Pay Commission is approaching, government employees and pensioners are expecting a good increment this time, so that they can live a “respectable and dignified life”. Let us tell you, the 8th Pay Commission is expected to be formally formed in April 2025.

Earlier, the employee side of the National Council of Joint Consultative Mechanism (NC-JCM) suggested that the terms and conditions of the new pay commission should also include review of retirement benefits like salary, allowances, other benefits, pension and gratuity in the terms and conditions of the new pay commission. Now it remains to be seen how much the 8th Pay Commission meets the expectations of government employees.

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