8th Pay Commission: How Much Salary Central Government Employees Can Expect?

On Thursday, January 16, 2025, Union Minister Ashwini Vaishnaw announced that Prime Minister Narendra Modi had approved establishing the 8th Central Pay Commission to review the salaries and benefits of central government employees. During a press conference in New Delhi, the union minister emphasised the importance of pay commissions in India’s post-independence history, noting that 7 such commissions have been established so far.

The minister stated, “For your information, our Prime Minister has approved the formation of the 8th Central Pay Commission for all central government employees,” emphasising the government’s commitment to regular pay commission reviews.

Historically, such commissions are formed every 10 years, and the 8th Pay Commission’s recommendations are expected to be implemented by 2026.

What Salary Increase Can Central Government Employees Expect?

The pay commission plays a crucial role in determining the salary structures, allowances, and other benefits for government employees. Its recommendations directly impact millions of workers and pensioners across India, with the salary hike being determined once the pay commission’s suggestions are finalised.

Fitment Factor in Pay Commission Recommendations

The fitment factor is a multiplier used to calculate the revised salaries of central government employees and pensioners. It is an essential part of the Pay Commission and is applied to adjust salaries and pensions after the commission’s recommendations are implemented.

Inconsistent assessments of grade pay and the spacing between pay bands directly affect the size of the fitment benefit.

Working of Fitment Factor in Salary Hikes

The salary used to calculate the revised pay under the new Central Pay Commission (CPC) will be the current salary or the salary the employee receives in the month the CPC is implemented. This salary refers to the basic pay, which is the sum of the pay band and grade pay. In the 7th Pay Commission, the fitment factor was set at 2.57, meaning the salary was multiplied by 2.57 to determine the new pay scale.

About 7th Pay Commission

The 7th Central Pay Commission, which was set up in 2016, is scheduled to conclude its term in 2026. Vaishnaw explained that setting up the 8th commission before 2025 will provide ample time to review and finalise its recommendations. This proactive move, he added, will allow the government to implement changes before the end of the current commission’s tenure.

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