8th Pay Commission: Anticipated Salary Increases for Central Government Employees and Pensioners with New Fitment Factor

 

The upcoming 8th Pay Commission is likely to introduce significant salary adjustments for Central Government employees and pensioners. With the proposal of a new fitment factor, the commission could lead to notable salary hikes aimed at enhancing financial stability and addressing inflation.

8th Pay Commission Salary Increment Updates:

Central Government employees and pensioners are eagerly awaiting the next salary increase under the 8th Pay Commission. Employee unions have been advocating for this new commission over the past year, though the government has yet to confirm its implementation. Media reports suggest that the Eighth Pay Commission might be introduced by January 1, 2026.

The salary hikes under the 8th Pay Commission would likely be calculated using a 'New Fitment Factor.' When the 7th Pay Commission was rolled out in 2016, the fitment factor was set at 2.57, resulting in a minimum wage of Rs 18,000. It is anticipated that after a decade, the fitment factor rules will be revisited.

Calculation of Salary Increase Under the 8th Pay Commission:

Every decade, the Central Government establishes a new pay commission to revise the salary structures of government employees based on the commission's recommendations. The Government Employees Union had proposed raising the fitment factor to 3.68 for higher salary increases, but it was raised to only 2.57. The fitment factor is a multiplier used to calculate salaries and pensions, which, under the 7th Pay Commission, raised the lowest salary from Rs 7,000 to Rs 18,000 and the lowest pension from Rs 3,500 to Rs 9,000. The highest salary reached Rs 2,50,000, and the highest pension Rs 1,25,000.

Expected Salary Increase with the 8th Pay Commission:

According to a Financial Express report, the fitment factor in the 8th Pay Commission might be set at 1.92. This could increase the minimum wage to Rs 34,560, thereby also raising pensions, which may go up to Rs 17,280.

The fitment factor plays a crucial role in determining the salaries and pensions of government employees. It is a multiplier that, when applied to the basic salary, increases it, thereby also increasing other allowances.