Government of India has officially announced the 8th Pay Commission for government employees in January 2025. While the commission was not specifically addressed in the Union Budget, it has sparked immense anticipation among government employees. The most pressing questions are about its implementation timeline and the potential salary increase under the commission.
Timeline for the 8th Pay Commission
According to Shiv Gopal Mishra, Secretary of the National Council – Joint Consultative Machinery (NC-JCM), the 8th Pay Commission is expected to be finalized by February 15, 2025. Afterward, the commission’s report will be completed by November 30, 2025, with the government reviewing it in December. It is anticipated that the commission will be implemented from January 2026, meaning that employees will see the salary hike from the new year.
Expected Salary Increase
Subhash Chandra Garg, a former Finance Secretary of India, shared in an exclusive interview that the fitment factor (the multiplier used to determine salary increases) may range between 1.92 to 2.08. The fitment factor is crucial because it determines how much the salary of employees will increase. On the other hand, Shiv Gopal Mishra suggests that the fitment factor should be 2.86, which would result in a significant hike in both salary and pension.
If the fitment factor of 2.86 is approved, the basic salary of central employees could increase from ₹18,000 to ₹51,480. Additionally, the basic pension for pensioners could rise from ₹9,000 to ₹25,740.
If the fitment factor of 1.92 is approved, the basic salary will increase from ₹18,000 to ₹34,560, and the pension of pensioners will increase from ₹9,000 to ₹17,280.
This salary increase is expected to bring substantial relief, especially for employees and pensioners whose current earnings are relatively low.
What is the Fitment Factor?
Fitment factor is the multiplier that the government uses to determine the increase in salary for employees. For instance, a fitment factor of 2.86 means that an employee’s current salary will be multiplied by 2.86, resulting in a higher salary. This factor directly impacts an employee’s earnings and standard of living.
Impact on Pensioners
8th Pay Commission also focuses on pensioners. Government aims to increase the pension in a way that improves the quality of life for pensioners. If the fitment factor of 2.86 is approved, pensioners will see a significant increase in their monthly payments, which will help them better manage their basic needs.
What Can Employees Expect?
Central government employees and pensioners are eagerly awaiting the implementation of the 8th Pay Commission. With the expected salary hikes, employees will likely experience an improved standard of living. This increase, which will depend on the fitment factor, will be a welcome relief for employees and pensioners who are facing financial challenges.
8th Pay Commission is expected to be implemented by January 2026, and the salary increase will vary depending on the fitment factor chosen by the government. Employees and pensioners can look forward to a better financial future with the expected salary hikes and pension increases.