8th Pay Commission: Central Govt Employees Likely To Receive 10-30% Salary Hike, Say Reports
The much-anticipated 8th Pay Commission is set to bring significant changes to the salary structure of central government employees, with reports suggesting a potential 10-30% hike in actual salary. Former Finance Secretary S C Garg has indicated that the additional fitment factor applied to the base factor of 1.6 will likely be within this range, aligning with past commission trends.
Salary Hike Expectations
Speculations regarding a massive 186% salary hike were rife, but experts and analysts have debunked this claim. According to Subhash Chandra Garg, a fitment factor of 2.86—which would justify such a hike-is unrealistic. Instead, he suggests that the actual fitment factor will likely be between 1.92 and 2.08.
'The National Council of Joint Consultative Machinery (NC-JCM) can demand a fitment factor of 2.86, but it is highly improbable,' said Garg in an interview with News24.
The fitment factor is a crucial element in determining the revised salaries. It is calculated by applying a multiplier to the current basic pay, including Dearness Allowance (DA) as of January 1, 2026.
Currently, the DA stands at 53% (as of July 1, 2024). With projected increments of 7% each in January and July 2025, the DA is expected to reach approximately 60% by January 2026.
- Base Factor: 1.6
- Expected Increase: 10-30%
- Revised Fitment Factor: 1.92-2.08
For instance, if the government applies a 20% increase to the base factor of 1.6, the calculation would be:
1.6 + (20% of 1.6) = 1.92
If the increase is 30%, the formula results in a fitment factor of 2.08.
7th Pay Commission vs 8th Pay Commission
The 7th Pay Commission, implemented in 2016, had a fitment factor of 2.57, which resulted in a substantial increase in minimum basic pay from Rs 7,000 to Rs 18,000. However, expectations that the 8th Pay Commission would push the fitment factor to 2.86 and set the minimum pay at Rs 51,480 seem highly exaggerated.
On January 16, 2025, the Union Cabinet approved the establishment of the 8th Pay Commission. Union Information and Broadcasting Minister Ashwini Vaishnaw confirmed that the commission’s recommendations will be finalized before the 7th Pay Commission tenure ends on December 31, 2025.
The 8th Pay Commission will be implemented from January 1, 2026, benefiting both government employees and pensioners. Historically, pay commissions are formed every 10 years, ensuring periodic revisions in salaries and pensions to accommodate economic changes.
While central government employees can expect a reasonable salary hike of 10-30%, exaggerated claims of an 186% jump should be taken with caution. The 8th Pay Commission’s recommendations will balance economic feasibility with employee expectations, ensuring a fair and sustainable salary structure for the coming decade.
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