Updated 13 June 2025 at 19:02 IST
8th Pay Commission Update: Fitment Factor, Salary Hike & Pension Impact Explained
The central government has announced the formation of the 8th Pay Commission, which is going to revise salaries and pensions for central government employees and pensioners.
Advertisement
8th Pay Commission: Salary Hike, Basic Pay Changes, and When You'll See The Increase | Image:
Shutterstock
The central government has announced the formation of the 8th Pay Commission, which is going to revise salaries and pensions for central government employees and pensioners.
The recommendations of the commission will benefit approximately 45 lakh employees and 68 lakh pensioners.
The pay commission's fitment factor determines the extent of salary as well as pension increases.
Fitment factor is calculated by adding the employee's existing basic pay to calculate their new basic pay under 8th Pay Commission.
Fitment Factor & Salary Hike:
- Expected fitment factor: 2.6 to 2.85.
- Anticipated salary increase: 25-30%.
- Example: Basic pay of Rs 20,000 may rise to Rs 46,600-Rs 57,200.
Pension Impact
The minimum pension could increase from Rs 9,000 to Rs 22,500-Rs 25,200 and proportional hikes will be aligned with salary revisions.
Government employees contribute 10% of their basic pay and dearness allowance (DA) to NPS, while the government contributes 14%. These contributions will increase following salary revisions.
Further, charges under CGHS will be updated based on revised salary levels.
Benefits For Pensioners
The formulas for calculating pensions and benefits have been changed by the previous pay commissions. Similar changes could be included in the 8th pay commission as well.
Published 13 June 2025 at 19:02 IST