The wait for 8th Pay Commission for central government employees and pensioners is now going to end soon. On 16 January 2025, the Union Cabinet headed by Prime Minister Narendra Modi approved the establishment of the 8th Pay Commission. This commission will make recommendations for improvement in salary, pension and allowances of employees. In this article, we will explain all the important information related to the 8th Pay Commission like salary increase, fitment factor and new pay matrix table.
8th Pay Commission: Chief Information
A brief description of the 8th Pay Commission is given in the table below:
| Description | Information |
| Declaration date | 16 January 2025 |
| Year of implementation | 1 January 2026 (Potential) |
| Fitment factor (estimated) | 1.92 to 2.28 |
| Minimum basic pay (estimated) | ₹ 18,000 to ₹ 34,560 – ₹ 41,000 |
| Beneficiary | Central government employees and pensioners |
| Commission category | Financial commission |
| Previous pay commission implemented | 7th Pay Commission (2016) |
Salary hike and fitment factor
What is fitment factor?
The fitment factor is the coefficient from which a new basic salary is fixed by multiplying the current basic pay. This is the main basis of increasing the salary of employees.
- The Fitment Factor in the 7th Pay Commission was 2.57, from which the minimum was increased from ₹ 7,000 to ₹ 18,000.
- The fitment factor is expected to be between 1.92 and 2.28 in the 8th Pay Commission.
Possible minimum and maximum salary
Possible salary based on fitment factor can be as follows:
| Current basic pay | New salary on 1.92 fitment factor | 2.28 fitment factor new salary |
| ₹ 18,000 | ₹ 34,560 | ₹ 41,040 |
| ₹ 25,000 | ₹ 48,000 | ₹ 57,000 |
| ₹ 30,000 | ₹ 57,600 | ₹ 68,400 |
| ₹ 50,000 | ₹ 96,000 | ₹ 1,14,000 |
New pay matrix and allowances
New pay matrix
A new pay matrix will be introduced in the 8th Pay Commission. It will have a revised salary structure for various grades and levels.
Possible pay matrix level
| Pay level | Current basic pay | Potential new basic pay (2.28 fitments) |
| Level 1 | ₹ 18,000 | ₹ 41,040 |
| Level 5 | ₹ 29,200 | ₹ 66,576 |
| Level 10 | ₹ 56,100 | ₹ 1,27,908 |
Changes in allowances
- Dearness allowance (DA): It will be added to the basic pay.
- House Rent Allowance (HRA): It may increase by 20–30%.
- Traffic Allowance: It will be revised according to inflation rate.
- Children’s Education Allowance: It is also likely to increase.
Pensioners and retirement benefits
Pensioners will also benefit under the 8th Pay Commission. His pension will be revised on the basis of new basic salary.
- Pensioners will also get dearness relief according to the new structure.
- Retirement benefits such as gratuity and PF will also improve.
Government’s plan and process
Why is the new pay commission necessary?
A new pay commission is set up every ten years in India to revise the salary and pension of employees according to inflation rate.
Process
- It was announced in January 2025.
- The Commission will start its work from April 2025.
- It will take about a year to prepare the report.
- The possible date to implement it is January 2026.
Reality: Will this plan apply at the right time?
Although the government has announced this, no special provision was made for this in the budget 2025. This indicates that there may be a delay in implementing it.
conclusion
The 8th Pay Commission will bring a big relief for Central Government Employees and Pensioners. This will not only strengthen their economic condition but also improve the standard of living. Although it may take time to be implemented, its advantages will be felt for a long time.
Disclaimer:
This article is written only for the purpose of providing information. All figures are estimated by the government until the final decision and notification is issued.
