How much will government employees' salaries increase under the Eighth Pay Commission? What could be the fitment factor? Full details.

Eighth Pay Commission: The most important factor will be the fitment factor—that is, the ratio between the old and new pay structures. The Seventh Pay Commission had a fitment factor of 2.57.

Eighth Pay Commission Updates: The Central Government has finally formally constituted the Eighth Pay Commission. This commission will review the salaries, pensions, and allowances of central government employees and pensioners and recommend revisions. The commission's recommendations are expected to impact over 10 million employees and pensioners.

What is the role of the Eighth Pay Commission?

The government has also notified the commission's Terms of Reference (ToR). Under this, the commission will:

Review the existing pay structure, service conditions, and retirement benefits.

Make new recommendations taking into account the country's financial situation, inflation, and economic growth.

During the pay revision, the government will focus on maintaining a balance between financial burden and employee income.

The Pay Commission is constituted every ten years to determine the salaries of government employees in line with inflation and other economic factors.

When will the Eighth Pay Commission be implemented?

The Seventh Pay Commission was implemented from January 1, 2016. Similarly, the Eighth Pay Commission is expected to be effective from January 1, 2026. If there is a delay in the Commission's report or implementation, employees may receive increased salaries along with arrears. The government has given the Commission 18 months to submit its report after consultation with various ministries, departments, and employee organizations.

How much will salaries and pensions increase?

The most important factor will be the Fitment Factor—the ratio between the old and new pay structures. The Seventh Pay Commission set the Fitment Factor at 2.57. According to experts, it could be between 2.8 and 3.0 in the Eighth Pay Commission. This means that a significant increase in employees' basic pay is possible. However, the actual increase in salaries and pensions will also depend on the revisions made to dearness allowance (DA), house rent allowance (HRA), and other allowances.

The Eighth Pay Commission aims to ensure that salary increases for government employees are fiscally sustainable, without putting excessive pressure on the government budget or impacting employees' actual income. Overall, this decision is being considered a major relief and encouraging news for central government employees and pensioners, which could lead to a significant increase in their income from 2026.