8th Pay Commission news: The central government has initiated consultations with key ministries and departments to set up the 8th Central Pay Commission (CPC), which will revise the pay structure of nearly 50 lakh central government employees and 62 lakh pensioners. A key focus of these discussions is the fitment factor, a crucial metric that directly impacts how much salaries will rise once the new pay scale is implemented.
What Is the Fitment Factor and Why It Matters
The fitment factor is a numerical multiplier used to calculate an employee’s revised basic salary when a new Pay Commission is rolled out. It helps standardize salary hikes across various levels. In the 7th Pay Commission, the fitment factor was set at 2.57, which meant that basic salaries were multiplied by this number to arrive at the new pay.
Early estimates suggest that the 8th Pay Commission may recommend a fitment factor of up to 2.86, resulting in a 30–34% hike in basic pay., according to various media reports. Though the government hasn’t officially confirmed the new multiplier yet, even a marginal increase could lead to substantial improvements in both salaries and pensions.
Salary Boost Could Triple Minimum Pay
If the proposal to set the fitment factor at 2.86 is accepted, the minimum basic salary of central government employees could jump from Rs 18,000 to Rs 51,480 — nearly a threefold increase. This wouldn’t just affect basic pay but would also trigger a ripple effect on other components of the salary like Dearness Allowance (DA), House Rent Allowance (HRA), and Travel Allowance (TA), all of which are calculated as a percentage of basic pay.
Pensioners, too, would benefit from this hike, as the fitment factor applies to them as well. Employee unions have been actively pushing for this increase, arguing that rising inflation and living costs necessitate a higher pay structure.
Timeline for Implementation
The 8th Pay Commission was approved in January 2025, but the formal notification is still awaited. In a recent statement to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary confirmed that discussions are ongoing with all stakeholders. The appointment of the Chairman and Commission members will happen only after the notification is issued.
Once constituted, the commission will submit its recommendations to the government, which will then review and approve them. The new salary structure is likely to come into effect from January 2027, following the usual timeline adopted in previous commissions.