8th Pay Commission: Good news for central employees and pensioners, salary may increase by up to 34%
8th Pay Commission news
8th Pay Commission: More than 1.2 crore employees and pensioners of the central government have been waiting for a long time for the formation of the 8th Pay Commission and the implementation of its recommendations. Earlier it was being estimated that this commission could come into effect from January 1, 2026, but till now there has been no concrete progress regarding the formation of the commission or the appointment of members.
However, in the meantime a positive news has come out. According to a report by brokerage firm Ambit Capital, the salary of central employees and pensioners may increase by up to 34% when the 8th Pay Commission is implemented.
What is the fitment factor and its effect?
Under the recommendations of the Government Pay Commissions, revision of salary, pension and allowances is done on the basis of the fitment factor. This factor determines how many times the basic salary of the employees will increase.
The fitment factor in the 7th Pay Commission was 2.57, taking the minimum salary to ₹ 18,000.
The fitment factor in the 8th Pay Commission is expected to be between 1.83 and 2.46.
According to the report, the actual increase could be around 14.3%, but the total salary can potentially increase by up to 34%.
What is included in the pay structure?
The salary of government employees includes these major components:
- Basic Pay
- Dearness Allowance (DA)
- House Rent Allowance (HRA)
- Transport Allowance (TA)
The basic pay is about 51.5% of the total salary. Dearness Allowance is made zero when the Pay Commission is implemented, as the new pay structure is reset.
