8th Pay Commission: 186% Salary Hike For Central Govt Employees? Here's What We Know

8th Pay Commission Latest News Updates: Over 1 crore central government employees and pensioners are eagerly awaiting an announcement from the Modi government regarding the establishment of the 8th Pay Commission. The commission is expected to provide recommendations to the Centre on salary and pension revisions for central staff, taking into account the current economic realities of the country.

With the implementation of the 8th Pay Commission, expected from January 2026, big salary changes and other welfare measures are expected to be introduced for central government employees and their families. However, the central government has not yet made an official announcement about the formation of the next pay commission. It is speculated that the Centre might announce it in the upcoming Union Budget. Once established, the new commission will present its recommendations to the Centre, and based on these suggestions, the Modi government will implement changes in the salaries and pensions of employees.

Proposed Salary Hike Under 8th Pay Commission

Recent media reports suggest that the government will be urged to implement a salary hike of 2.86 times under the new pay commission. This increase will be calculated using a fitment factor of 2.86, as proposed by the National Council of the Joint Consultative Machinery (NC-JCM).

What is the Fitment Factor?

The fitment factor is a multiplier used to revise the salaries of government employees and the pensions of retirees.

Fitment Factor Under 7th Pay Commission

Under the 7th Pay Commission, the central government used a fitment factor of 2.57, which led to an increase in the minimum salary from ₹7,000 to ₹18,000.

With every new pay commission, changes are made to salaries and pensions. Currently, central employees receive salaries based on a fitment factor of 2.57. If this factor is increased to 2.86, there could be a significant rise in basic salaries. For example:

Current minimum basic salary: ₹18,000

Revised minimum basic salary with a fitment factor of 2.86: ₹51,480 

Effect on Pension

An increase in the fitment factor will also lead to a substantial change in pensions. At present, the minimum pension is ₹9,000. If the fitment factor is raised to 2.86, it could increase to ₹25,740. 

Dearness Allowance Revision On Cards?

In addition to the fitment factor, dearness allowance (DA) is a key component of the salaries and pensions of central employees. With changes in the basic salary, dearness allowance and other government-provided perks will also be revised.

Unified Pension Scheme (UPS)

The Unified Pension Scheme (UPS) is set to be implemented from April 1, 2025. Under this scheme, pensions will be calculated based on the salary of the 12 months prior to retirement. This is also expected to result in an increase in the pensions received post-retirement.