A major development is in the pipeline for central government employees. The government is actively working on forming the 8th Pay Commission, which could bring a significant salary hike for lakhs of employees and pensioners. While the final announcement is still awaited, initial reports indicate that the fitment factor — a crucial element in salary calculation — will play a central role in the pay scale revision.
The 8th Pay Commission formation was announced in January 2025.
The government is currently working on its terms of reference and appointment of chairperson and commission members.
If all goes according to plan, the new pay structure may be implemented by 2027.
The salary hike will be primarily based on the fitment factor, which determines the multiplication rate applied to the current basic pay.
The fitment factor is used to calculate the revised basic salary. For example:
If the fitment factor is 2.86 and the current basic salary is ₹20,000:
₹20,000 × 2.86 = ₹57,200 (Revised basic salary)
Currently, sources suggest the 8th Pay Commission may recommend a fitment factor of 1.90 to 1.95, which could lead to modest to moderate hikes compared to previous commissions.
| Pay Commission | Year | Fitment Factor | Approximate Salary Hike |
|---|---|---|---|
| 6th CPC | 2006 | 1.86 | ~54% |
| 7th CPC | 2016 | 2.57 | ~14.2% (due to DA merger) |
| 8th CPC (Expected) | 2027 (tentative) | 1.90 - 1.95 | To be confirmed |
Some employee unions are pushing for a fitment factor of 2.86 to counter inflation and match living costs, but official confirmation is awaited.
Although the government announced the commission in January 2025, it hasn’t been formally constituted yet.
Based on past trends:
It typically takes 18–26 months from formation to final report submission.
Example:
7th CPC was approved in Sept 2013 and submitted its report in Nov 2015.
6th CPC took around 18 months.
Thus, implementation of 8th CPC is likely by late 2026 or 2027.
To avoid a high fitment burden, sources suggest the government may revise the DA (Dearness Allowance) mechanism separately, allowing for a lower fitment factor while still ensuring a reasonable take-home hike.
Keep expectations realistic: Fitment factor may not cross 2.0.
Inflation impact and fiscal space will influence final recommendations.
Formal constitution of the commission is pending — once done, a clear roadmap will follow.
The 8th Pay Commission is a step closer to reality. While the exact salary hike and fitment factor are yet to be finalized, employees can expect a reasonable revision in basic pay, likely within the next two years. As the government moves forward with its formation, more clarity on the commission's scope, structure, and impact is expected soon.
