8th Pay Commission: Over 1 crore central government employees and pensioners are eagerly awaiting an announcement from the Modi government with regard to the setting up of the 8th Pay Commission, which will give its recommendations to the Centre on salary and pension revision for central staff based on the current economic realities of the country.
With the implementation of the 8th Pay Commission, expected from January 2026, major salary changes and other welfare measures will be introduced for central government employees and their families. However, no official announcement has been made by the central government regarding the formation of the next pay commission, but it is expected that the Centre might announce it in the upcoming Union Budget. Once the new commission is announced, it will give its recommendations to the Centre, and based on those suggestions, the Modi government will implement changes in the salary and pension of employees.
According to recent media reports, the government will be urged to implement a salary hike of 2.86 times under the new pay commission. This increase will be based on a fitment factor of 2.86, as proposed by the National Council of the Joint Consultative Machinery (NC-JCM).
What is fitment factor?
The fitment factor is a multiplier used to revise the salaries of government employees and the pensions of retirees.
What was the fitment factor used for salary revision under the 7th Pay Commission?
Under the 7th Pay Commission, the central government used a fitment factor of 2.57, which led to an increase in the minimum salary from Rs 7,000 to Rs 18,000.
With the implementation of every new pay commission, changes are made in salary and pension. At present, central employees are being paid salary on the basis of a fitment factor of 2.57. If it is increased to 2.86, then there can be a big increase in the basic salary of the employees. For example:
The current minimum basic salary is Rs 18,000. If the fitment factor is 2.86, it will increase to Rs 51,480.
What will be the effect on pension?
Increasing the fitment factor will also bring a big change in pension. At present, the minimum pension is Rs 9,000. If the fitment factor is made 2.86, it can increase to Rs 25,740.
Dearness allowance will also be revised
Apart from the fitment factor, dearness allowance (DA) also plays an important role in the salary and pension of central employees. With the change in basic salary, dearness allowance and other perks from the government will also get revised.
The Unified Pension Scheme (UPS) will be implemented from April 1, 2025. The pension under the UPS scheme will be calculated on the basis of the salary of 12 months before retirement. This is also expected to increase the pension received after retirement.