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- 8th Pay Commission Approved: Basic Pay ₹45K at Fitment Factor 3 | Benefits to 1.24 crore employees
New Delhi2 hours ago
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The Central Government has approved the terms and conditions i.e. Terms of Reference (TOR) of the 8th Pay Commission. After this, major changes are expected in the salary, pension and allowances of about 55 lakh serving employees and 69 lakh pensioners. The commission has been given 18 months time to submit its recommendations.
What is fitment factor and why is it important?
Fitment factor is the coefficient or multiplier which is used to revise the basic salary of central employees and pensioners. Its role is most important in deciding the new salary structure.
A fitment factor of 2.57 was implemented in the 7th Pay Commission, which came into effect from 2016. Under this, if the basic salary of an employee was ₹ 15,000, then it increased to ₹ 38,550.
Demands of employee unions and estimates of experts
For the 8th Pay Commission, central employee unions and associations have mainly demanded increasing the fitment factor and a big increase in the minimum basic pay. Some unions have proposed increasing the fitment factor from 3 to 5 or more. However, pension experts believe that such a huge demand may not be compatible with financial realities.
According to pension experts, the Commission may make changes in the method of calculating the minimum wage. For this, the consumption units of the family can be increased from three to five and the fitment factor can be considered to 2.64.
How much can the inhand salary of employees increase?
The final increase in salary will depend on what the commission recommends and what the government approves. This can be understood from two different examples…
- First example (based on 60% DA): Suppose the basic pay of an employee is ₹ 100. Including 60% Dearness Allowance (DA), his total earning becomes ₹ 160. If the basic pay doubles to ₹200 after the new fitment factor, then his effective salary will increase by about 25% compared to the current ₹160.
- Second example (when fitment factor is 3): If the government increases the fitment factor from the current 2.57 to 3.0, the entry-level basic pay could increase by more than 15 to 20%. In this situation the basic salary of ₹ 15,000 will directly become ₹ 45,000.
Experts say that even if the government keeps the fitment factor lower than the demand of employee unions, there will be a big increase in government expenditure and employees will see a respectable jump in their salaries.
How much was the benefit in the 7th Pay Commission?
For comparison, the 7th Central Pay Commission had increased the minimum salary for the lowest level employees to ₹18,000 per month.
Along with this, the salary of newly recruited Class-I officers was fixed at ₹ 56,100. Due to this, a total increase of 14.29% was recorded in the total salary and pension from January 1, 2016.
8th Pay Commission team is visiting the states
Presently the 8th Pay Commission is visiting different states. The Commission team is meeting employee associations and unions there.
During this time, memorandums of the demands and proposals of the employees are being noted. The unions have mainly demanded salary revision and improvement in benefits after retirement.
When will the 8th Pay Commission be implemented and when will the report come?
The Central Government had approved the Terms of Reference (TOR) of the 8th Pay Commission in October 2025 and gave the panel 18 months to submit the report. Although the 8th Pay Commission has been considered effective from January 1, 2026 in place of the 7th Pay Commission, the Commission is expected to take about 18 months to complete its work.
The Commission has extended the last date for submission of memorandum to June 15, 2026. After this, the suggestions of all the stakeholders will be examined and final recommendations will be prepared.
Employee organizations say that if the report is submitted by June-July 2027, the liability of the government to pay arrears will increase significantly. After the recommendations are accepted and implemented, the Central Government will give the entire arrears of the intervening period to the employees.
At present, employee organizations are pressing for higher multiplier and better retirement benefits, while experts say that the final decision will be taken only after looking at the financial conditions of the country.
What is Pay Commission?
Central Pay Commission is a panel constituted to review the salary, allowances, pension and other benefits of central government employees.
Usually, a new pay commission is constituted every 10 years in the country, which gives recommendations to improve the standard of living of government employees according to the changing economy and inflation.
