The central government approved the 8th Pay Commission last month. Since then, there have been speculations about the fitment factor and how much the salaries of central employees will increase. Some experts suggest that the minimum basic salary could increase by 108-186 percent. However, former Finance Secretary Subhash Chandra Garg, in an interview, claimed that the increase will be limited to 20 to a maximum of 30 per cent.
This has left over 1 crore central employees and pensioners confused about how much their salaries will rise. Let’s break down how much the salary could realistically increase.
What is the 8th Pay Commission?
Central employees are currently receiving salaries under the 7th Pay Commission, which has been in effect since 2016. Every pay commission revises salaries and pensions based on inflation. As a result, government employees expect a significant salary increase from the 8th Pay Commission.
Expected Fitment Factor in the 8th Pay Commission
Former Finance Secretary Subhash Chandra Garg stated in an interview that the government may approve a fitment factor between 1.92 to 2.08 in the 8th Pay Commission. However, Shiv Gopal Mishra, Secretary of NC-JCM (National Council – Joint Consultative Machinery), believes that the fitment factor should be 2.86.
The fitment factor is a number that determines how much the minimum basic salary will increase.
How Much Will the Salary Increase?
If the 8th Pay Commission is implemented in January 2026, the Dearness Allowance (DA) is expected to be around 60% at that time.
- Current minimum salary (under 7th Pay Commission) = Rs 18,000
- Salary after adding DA = Rs 28,800
Now, let’s look at the possible salary under different fitment factors:
At 1.92 fitment factor:
- New minimum salary = Rs 34,560 (about 20% increase)
At 2.08 fitment factor:
- New minimum salary = Rs 37,440 (about 30% increase)
At 2.86 fitment factor:
- New minimum salary = Rs 51,480 (about an 80% increase)
If we exclude DA, the salary increase will be:
- 92% increase at 1.92 fitment factor
- 108% increase at 2.08 fitment factor
- 186% increase at a 2.86 fitment factor
This means that after the implementation of the 8th Pay Commission, the salary will likely increase by 20-30%. However, the final increase will depend on the economic condition of the government and the country.
Benefits of the 8th Pay Commission
- Employees’ salaries and pensions will increase.
- The higher salary will improve spending capacity.
- The economy will benefit from increased consumer spending.
Challenges of the 8th Pay Commission
- It will increase financial pressure on the government.
- Higher salaries may affect inflation.
- The salary gap between government and private sector jobs may widen.