There could be no better news for central government employees than this: Prime Minister Modi has approved the formation of the 8th Pay Commission. The recommendations of the 8th Pay Commission will come after the 7th Pay Commission term ends in 2026. However, the most discussed topic now is how much the employees’ salaries will increase. The fitment factor will play the biggest role in this, as it is the key to revising salary and pension.
Given the inflation, changing the fitment factor is very important. The salary revision will be known only when the 8th Pay Commission’s recommendations are out. However, the increase in the 8th Pay Commission could be even bigger than the 6th Pay Commission.
What is the fitment factor and why is it needed?
The fitment factor is the amount by which salaries and pensions are revised. In the 7th Pay Commission, the fitment factor was set at 2.57, which raised the minimum salary from ₹7,000 to ₹17,990. We don’t know yet what the fitment factor for the 8th Pay Commission will be, but the chairman will present his recommendations by 2026.
Good news for government employees and pensioners!
8th Pay Commission appointed.
Modi government gives justice to all at appropriate time.#CabinetDecisions #8thpaycommission #ModiGovt pic.twitter.com/wtBTcNyxEJ
— Prakash Javadekar (@PrakashJavdekar) January 16, 2025
Will salaries change every year with the 8th Pay Commission?
After the 7th Pay Commission, the salary increase was smaller compared to previous revisions. The increase was based on the fitment factor of 2.57. If the same method is used for the 8th Pay Commission, the minimum salary could go up to ₹26,000.
How much have salaries increased in the past Pay Commissions?
- 4th Pay Commission: Salary increased by 27.6%, and the minimum salary became ₹750.
- 5th Pay Commission: Salary increased by 31%, and the minimum salary became ₹2,550.
- 6th Pay Commission: A fitment factor of 1.86 times increased salary by 54%, raising the minimum salary to ₹7,000.
- 7th Pay Commission: In 2014, a fitment factor of 2.57 raised salaries by 14.29%, bringing the minimum salary to ₹17,990.
What increase is expected in the 8th Pay Commission?
If the 8th Pay Commission keeps the old formula, the fitment factor could be increased to 3.68 times. This would raise the minimum salary by 44.44%, and the minimum salary could become ₹26,000.
Cabinet has given approval to 8th pay commission.
Read: https://t.co/EwEz0OSLZB pic.twitter.com/xXzTvRVMAi
— NDTV Profit (@NDTVProfitIndia) January 16, 2025
When will the 8th Pay Commission be formed?
Prime Minister Narendra Modi has approved the formation of the 8th Pay Commission. The next steps involve bringing the proposal to the cabinet. Once the panel and chairman are decided, the Pay Commission will be officially formed. It is expected to be formed in 2026. Central employees and pensioners are waiting for it eagerly.
