8th Pay Commission: ToR approved; Salary hike & Fitment Factor for Govt employees Explained
The Union Cabinet approved the 8th Central Pay Commission, set to benefit 50 lakh central government employees and 65 lakh pensioners. This temporary body will review salary structures, allowances, and the crucial 'Fitment Factor' within 18 months. Recommendations, expected to increase basic salaries significantly, will be effective from January 1, 2026, with arrears for any implementation delays.
New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi on Tuesday approved the Terms of Reference (ToR) of the 8th Central Pay Commission. This commission will be a temporary body consisting of a chairperson, a part-time member and a member-secretary. This Commission will give its recommendations within 18 months from the date of its constitution and if necessary, the Commission will be able to submit an interim report on any of its subjects. With its implementation, about 50 lakh central government employees and 65 lakh pensioners will get direct benefits. Let us know how much the salary of central employees will increase and from when will they get this increased money.
With the constitution of the 8th pay commission, the biggest benefit will be in the basic salary of central employees. This commission will review the 'Fitment Factor' (Fitment Factor), which determines how much the basic salary will increase. Apart from this, the Commission will also give its opinion on changes in salary structure, Dearness Allowance (DA) formula and other allowances like HRA, TA etc. However, no information about its 'fitment factor' has been revealed yet. If we talk about the 7th Pay Commission, then at that time the fitment factor was kept at 2.57 times. It is believed that under the 8th Pay Commission, the fitment factor can be between 1.92x and 2.46x.
Example 1: If the current basic salary of an employee is 18000 rupees and the fitment factor is kept at 1.92x in the 8th pay commission, then his new estimated basic salary will be 34560 rupees.
Example 2: If the fitment factor is kept at 2.46x, then the one who is currently getting a basic salary of 18000 rupees may have an estimated basic salary of 44280 rupees.
Due to the delay in the formation of the Pay Commission this time, there is little chance of implementing the recommendations from 2026. Because, the Commission has been asked to give recommendations in 18 months. After the implementation of the report, it will be considered effective from 1 January 2026. In such a situation, the delay with which it is implemented, the arrears will be given to the employees i.e. whether the 8th pay commission is implemented in 2027 or 2028, all employees will get an increased salary from January 2026.