New Delhi: The Government of India, under Prime Minister Modi, is in the process of forming the 8th Central Pay Commission (CPC). This commission will review and recommend salary revisions for nearly 50 lakh central government employees and about 65 lakh pensioners. Key ministries like the Ministry of Home Affairs, Ministry of Defence, Department of Personnel and Training, and various state governments are being consulted as part of this process. The government’s plan is to formally notify and appoint the chairperson and members of the 8th CPC soon, after which the commission will start its work. The revised pay structure is expected to be implemented from January 1, 2026, but final figures will be available only after the commission submits its report and the government approves it.
A central concept in salary revision under the pay commissions is the “fitment factor.” The fitment factor is a multiplier used to calculate the new basic pay of government employees by multiplying it with their current basic pay. This ensures uniform salary hike across different pay grades. For example, if your current basic pay is Rs 30,000 and the fitment factor is 2.57, your new basic pay becomes Rs 77,100 (30,000 x 2.57). A higher fitment factor means a bigger salary increase. The 7th Pay Commission used a fitment factor of 2.57. For the 8th Pay Commission, experts predict it will range from about 1.92 to 2.86 depending on economic conditions, inflation, and government fiscal capacity.
Here is a simple example of how the fitment factor affects salaries at different pay grades (grade pays of Rs 1900, 2400, 4600, 7600, 8900). These numbers include basic pay multiplied by the factor, along with typical allowances such as:
House Rent Allowance (HRA): 24 percent of basic pay for X-class cities
Transport Allowance (TA): Rs 3,600 to Rs 7,200 depending on level
National Pension System (NPS) deduction: 10 percent of basic pay
Central Government Health Scheme (CGHS): small fixed rate
For Grade Pay 1900:
At fitment factor 1.92: Basic Rs 54,528, HRA Rs 13,086, TA Rs 3,600 → Net salary approx Rs 65,512
At fitment factor 2.57: Basic Rs 72,988, HRA Rs 17,517 → Net salary approx Rs 86,556
For Grade Pay 2400:
At 1.92 factor: Basic Rs 73,152 → Net around Rs 86,743
At 2.57 factor: Basic Rs 97,917 → Net around Rs 1,14,975
For Grade Pay 4600:
At 1.92 factor: Basic Rs 1,12,512 → Net approx Rs 1,31,213
At 2.57 factor: Basic Rs 1,50,602 → Net approx Rs 1,74,636
For Grade Pay 7600:
At 1.92 factor: Basic Rs 1,53,984 → Net approx Rs 1,82,092
At 2.57 factor: Basic Rs 2,06,114 → Net approx Rs 2,41,519
For Grade Pay 8900:
At 1.92 factor: Basic Rs 1,85,472 → Net approx Rs 2,17,988
At 2.57 factor: Basic Rs 2,48,262 → Net approx Rs 2,89,569
These projections show how salary and allowances might increase under different fitment factors, giving employees a rough idea of what to expect. The final decision on the fitment factor and pay revision will depend on the 8th CPC’s recommendations and government approval[quoted data].
It is also expected that the dearness allowance (DA) will be reset to zero when the 8th CPC pay structure is implemented, as happened with the 7th CPC. DA is revised twice a year to offset inflation and is a separate component from the basic pay and allowances.