8th Pay Commission: The central government has sanctioned the establishment of the 8th Pay Commission, marking a significant New Year’s gift for approximately 1.25 crore central government employees and pensioners. The current 7th Pay Commission is set to conclude in January 2026, with the 8th Pay Commission scheduled for implementation immediately thereafter.
Pensioners will be also benefited
This new Pay Commission will not only benefit employees but will also provide substantial advantages to pensioners, leading to a considerable increase in pensions for retiring employees.
Debate over Fitment Factor
During the discussions surrounding the implementation of the 7th Pay Commission, employees advocated for a fitment factor of 3.68 to revise salaries accordingly. However, the government opted for a fitment factor of 2.57, resulting in the minimum basic salary rising from Rs. 7,000 to Rs. 18,000. Similarly, pensions saw an increase from Rs. 3,500 to a minimum of Rs. 9,000 following the 7th Pay Commission’s implementation.
As a result of the 7th Pay Commission, both salaries and pensions experienced a 2.57-fold increase. Consequently, the maximum basic salary reached Rs. 2.5 lakh, based on the fitment factor of 2.57, while the maximum pension was set at Rs. 1.25 lakh.
In case the fitment factor counts as 1.92
The determination of salaries and pensions, whether for active employees or retirees, hinges on the fitment factor. Employee unions are currently advocating for a fitment factor of 2.86, although it is anticipated that a fitment of 1.92 may be adopted. Should the government proceed with this fitment, the minimum salary could rise from Rs. 18,000 to Rs. 34,560, with pensions increasing from Rs. 9,000 to Rs. 17,280.
If fitment factor counts as 2.86
Conversely, if the 2.86 fitment factor is implemented, the minimum salary could soar from Rs. 18,000 to Rs. 51,480. If the same fitment factor is utilized for the pension, it will rise from Rs 9,000 to Rs 25,740.