Will Salaries Triple Under the 8th Pay Commission? Early Calculations Suggest Big Hike for Govt Employees

The 8th Pay Commission is poised to bring a major transformation in the salary structure of nearly 50 lakh central government employees and around 62 lakh pensioners. Though the commission was approved by the government in January 2025, the official notification is still awaited. However, early discussions and calculations are already indicating a substantial salary hike that could be as high as three times the current basic pay.

What Is the Fitment Factor and Why Does It Matter?

One of the core elements under consideration is the fitment factor, a numerical multiplier used to determine the revised basic pay under the new pay structure. It plays a crucial role in standardizing the salary increase across various employee levels.

In the 7th Pay Commission, the fitment factor was set at 2.57, meaning that employees’ basic pay was multiplied by this number to calculate the revised salary. For example, if an employee had a basic pay of ₹10,000, it was revised to ₹25,700.

What Could Change with the 8th Pay Commission?

According to multiple media reports, the 8th Pay Commission may recommend a fitment factor of 2.86, which would result in a 30–34% increase in basic salary. While there’s no official confirmation yet, this adjustment alone could lead to significant changes in paychecks across the board.

If accepted, this would mean the minimum basic salary could jump from ₹18,000 to ₹51,480 — a nearly threefold increase. But the impact doesn’t end there. Since other benefits like Dearness Allowance (DA), House Rent Allowance (HRA), and Travel Allowance (TA) are calculated as a percentage of basic pay, a higher base would naturally increase the total compensation package.

Pensioners to Benefit Too

The proposed hike will not just benefit active employees. Since the fitment factor applies to pension calculations as well, retired government employees are also expected to see a boost in their monthly pensions. This move is being viewed as a step toward addressing long-standing concerns about inadequate post-retirement income among pensioners.

When Will the 8th Pay Commission Be Implemented?

Although the government gave its approval in January 2025, a formal notification is yet to be released. Recently, in a Lok Sabha statement, Minister of State for Finance Pankaj Chaudhary revealed that consultations with all key stakeholders are currently in progress.

Once these discussions are concluded, the appointment of the commission’s chairperson and members will follow. Only after this will the panel begin formulating recommendations, which will then be reviewed and approved by the government.

Based on the implementation timelines of previous pay commissions, experts believe that the new salary structure may come into effect from January 2027.

Summary: What's at Stake?

• Fitment Factor May Increase to 2.86

• Basic Pay Could Rise from ₹18,000 to ₹51,480

• Other allowances like DA, HRA, TA will also rise

• Pensioners will gain from revised calculations

• New pay scale likely to roll out in January 2027

Final Thoughts

While nothing is set in stone yet, the 8th Pay Commission could be a game changer for government employees and pensioners alike. The proposed salary hike, driven by an improved fitment factor, signals better compensation, increased motivation, and improved financial security for lakhs of individuals across India. Stay tuned for the official notification, which is expected to bring more clarity in the coming months.