8th Pay Commission: There is big news for central government employees regarding salary increases. The government has issued the Terms of Reference (TOR) for the Eighth Pay Commission, and the term of the current commission will end on December 31, 2025. The fitment factor is expected to be between 1.83 and 2.46, which could lead to a significant increase in basic salary, DA, and HRA. If the recommendations of the 8th Pay Commission are implemented, employees may receive the benefit of the new salary from January 1, 2026.

8th Pay Commission: This is great news for central government employees. The 8th Pay Commission has formally started its work, and the government has also issued its Terms of Reference (TOR). The term of the current 7th Pay Commission will end on December 31, 2025.  Therefore, it is expected that the new salary may be implemented from January 1, 2026, after midnight on December 31, 2025.

The biggest hope rests on the fitment factor

The fitment factor will play the most crucial role in the 8th Pay Commission. The existing basic salary will be converted into the new salary based on this factor. According to reports, the fitment factor could be between 1.83 and 2.46. If this happens, the minimum salary of employees could reach between Rs 32,940 and Rs 44,280.

Comparison with the 7th Pay Commission

In the 7th Pay Commission, the fitment factor was 2.57, which led to a significant increase in employees' salaries. Based on this, it is believed that if a strong fitment factor is determined in the 8th Pay Commission as well, a good salary increase is certain. Not just basic pay, allowances will also increase

The increase in the fitment factor will not only increase the basic salary but will also directly impact other allowances, including dearness allowance (DA), house rent allowance (HRA), and transport allowance. This means that employees' net salaries could see a significant jump.

How is the fitment factor determined?

The fitment factor is not determined on a single basis. The commission studies several economic and social aspects. This includes the current inflation rate, cost of living, average family needs, food and beverage expenses, and essential expenses such as education, healthcare, and internet. The final fitment factor will be determined after considering all these factors.

What does the Ambit Capital report say?

According to a report by the financial firm Ambit Capital, the fitment factor could range between 1.83 and 2.46. This could lead to a 14% to 54% increase in employees' salaries. However, a 54% increase is considered less likely. Some other reports have also estimated the fitment factor to be between 1.92 and 2.57.

Estimated salaries based on grade pay

With the implementation of the fitment factor, the salaries of employees with different grade pay will vary.

• Net salary for Grade Pay 1900: ₹65,000 to ₹86,000


• Net salary for Grade Pay 4600: ₹1.31 lakh to ₹1.74 lakh


• Net salary for Grade Pay 7600: ₹1.82 lakh to ₹2.41 lakh


• Net salary for Grade Pay 8900: ₹2.17 lakh to ₹2.89 lakh


• Note: These figures are based on expert estimates.

When can the 8th Pay Commission be implemented?

According to government information, the Pay Commission may submit its report within 18 months. However, the date of implementation has not yet been decided. But media reports estimate that government employees are likely to benefit from it from January 1, 2026. Disclaimer: Prabhat Khabar does not provide any recommendations for buying or selling in the stock market. We publish market-related analyses based on information from market experts and broking companies. However, please make market-related decisions only after consulting with certified experts.