Thursday, October 23, 2025
spot_img

8th Pay Commission: Timeline, Fitment Factor, and Salary Boost

spot_img
- Advertisement -

Union Cabinet has given in-principle approval for the formation of the 8th Pay Commission, which will revise salaries, pensions, and allowances for central government employees and pensioners.

According to reports by Ambit Institutional Equities, the commission is expected to submit its recommendations by the end of 2025, with implementation likely to begin from January 1, 2026.

However, historical trends suggest a possible delay.

For instance, the 7th Pay Commission, announced in 2014, was implemented only in 2016.

If similar delays occur, the rollout of the 8th Pay Commission could extend into FY27.

Expected Salary Hike: 30–34% Increase on the Cards

The 8th Pay Commission is projected to recommend a 30–34% hike in salaries and pensions for central government employees and retirees.

This increase is expected to align with inflation trends, cost-of-living adjustments, and economic growth.

  • Minimum basic salary may rise from ₹18,000 to ₹51,480, based on a proposed fitment factor of 2.86 to 3.0, up from 2.57 under the 7th Pay Commission.
  • The hike could cost the government an additional ₹1.8 lakh crore, but is also expected to boost domestic consumption and improve employee morale.

Fitment Factor: The Key to Salary Calculations

The fitment factor is a multiplier used to revise basic pay. Under the 7th Pay Commission, it was set at 2.57, resulting in a modest 14.3% increase in basic pay.

Analysts expect the 8th Pay Commission to recommend a higher factor, possibly between 2.86 and 3.2, to better reflect inflation and living costs.

8th Pay Commission: Who Will Benefit?

The 8th Pay Commission will directly impact over 1.12 crore individuals, including:

These beneficiaries represent a significant portion of India’s formal workforce, despite comprising just 0.7% of the total labour force.

Salary Structure: What Will Change?

The revised salary will include:

  • Basic Pay: Core component based on pay level and seniority
  • Dearness Allowance (DA): Inflation-linked adjustment, reset to zero at the start of a new commission
  • House Rent Allowance (HRA): Varies by location
  • Transport Allowance (TA): Fixed monthly amount based on city type

The Pay Matrix system, introduced in the 7th CPC, will continue to guide salary revisions across 24 levels.

Experts believe the proposed hike will outpace inflation, which is expected to hover around 6–7%, thereby improving purchasing power and quality of life for government employees.

The commission also aims to simplify pay structures and ensure equitable compensation across roles.


Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates. Subscribe to our Channels. WhatsApp– Click HereGoogle News– Click HereYouTube – Click Here, and LinkedIn– Click Here.

spot_img

Editorial

Why TCS Deferred FY25 Salary Hike: Better Hike Ahead?

TCS had initially announced its annual salary hike during...

Deloitte, PWC, EY, KPMG to Hire 1 Lakh People in India in FY25

According to estimates from top company officials and industry...

Higher EPS Pension Application Stuck: A Step-by-Step Guide to Fix

Nearly 97,640 Provident Fund (PF) members and pensioners under...

Employee Benefits at India’s Big 4 Firms Deloitte, PwC , EY, KPMG

The Big 4 firms; Deloitte, PwC (PricewaterhouseCoopers), EY (Ernst...

TCS Announces 4-8% Salary Hike for FY25, Lowest in Last 4 Years

Tata Consultancy Services (TCS), India's largest IT services provider,...

Must Read

Twitter employee who got fired sleeping in office breaks silence

Earlier in November 2022, A Viral picture was shared...

Bajaj Allianz appoints a new CHRO

Bajaj Allianz Life appoints Santanu Banerjee as its new...

Flipkart Joins Industry Trend: Five-Day Work From Office

Walmart-owned e-commerce giant Flipkart has announced that all employees...

Coforge is Hiring for nearly 200 Job Openings in India

Coforge, formerly known as NIIT Technologies, is making significant...

Cryptocurrency Hiring to See Revival in 2025 Amid Talent War

The cryptocurrency industry is poised for a significant hiring...

PwC gets Nathan SV as Country Head- Acceleration Centers, India

PwC India has appointed Nathan SV as new Country...

In January over 38000 people were laid off… Gen AI Impact starts

So far in 2024, there have been 176 layoffs at tech companies...

Cognizant is hiring for various roles including WFH Jobs, Apply

An American multinational information technology services and consulting company,...

Related Articles

Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus