The central government is rushing to set up the 8th Pay Commission with hopes of implementing it by 1 January 2026. The Defence and Home Ministries have already been consulted; however, the final notification and member appointment is yet to be done. With everything reported so far, it is expected that the salary hike will be lower than the previous 14.3% increase from the last commission.
Fitment Factor and Expected Salary Hike
Economists have weighed in on the matter and believe that the fitment factor, which uses basic pay to determine the revised basic pay, will be set at 1.8. This is notably lower than the 2.57 fitment factor given in the 7th Pay Commission. In turn, that means the overall salary hike will be capped at 13% even with the 1 crore employees and pensioners. The Dearness Allowance (DA), which is currently set at 59%, will be reset to zero after the implementation of the new pay structure.
Salary Projection Table Based on Fitment Factor
Here’s a comparison of projected salaries under the 8th Pay Commission using a fitment factor of 1.8:
| Current Basic Pay (₹) | 7th CPC Salary (₹) | 8th CPC Salary (₹) | Estimated Increase (₹) |
|---|---|---|---|
| ₹18,000 | ₹18,000 | ₹32,400 | ₹14,400 |
| ₹25,000 | ₹25,000 | ₹45,000 | ₹20,000 |
| ₹35,000 | ₹35,000 | ₹63,000 | ₹28,000 |
| ₹50,000 | ₹50,000 | ₹90,000 | ₹40,000 |
| ₹60,000 | ₹60,000 | ₹1,08,000 | ₹48,000 |
Timeline and Budgetary Concerns
Expectations for the timeline are now set at FY27. This is due to a lack of refinement of the Terms of Reference for the commission that was announced in January 2025. The commission is expected to have a fiscal impact of 1.8 lakh crore a year, which sets the government to a conservative multiplier to balance between welfare and budgetary discipline.
Final Thoughts
While the 8th Pay Commission expects to restructure the salary and pension framework, the increase may only be nominal. For the time being, employees are sitting tight waiting for formal recommendations, but the fitment factor continues to be the most prominent calculation determining future salaries. These next few months will be the most telling on how much the government is willing to budge on fulfilling expectations.
Also Read: DA Hike July 2025: ₹3,600 Monthly Boost for ₹30,000 Basic Pay Earners