8th Pay Commission Update: Salaries May Rise By 30–34%, Says Report: Fitment Factor, Key Details Inside

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New Delhi: Over millions of government employees are holding their breath as talks around the 8th Pay Commission gain momentum. If approved, it could bring a big 30–34 per cent hike in salaries and pensions—something that could directly benefit nearly 11 million people, as per a report by Ambit Capital quoted in The Economic Times.//

When Can You Expect the Hike?

The new pay scale is likely to roll out from January 2026. However, before that the Pay Commission has to be set up, the report is prepared and sent to the government for approval. As of now, only the announcement has been made and key details like who will lead the commission and what its exact terms will be are still awaited.

What Will the Fitment Factor Be?

The fitment factor under the 8th Pay Commission could range between 1.83 and 2.46. In simple terms, this means your basic salary may be multiplied by this number to calculate the new revised pay, according to Ambit Capital.

Who Will See a Salary Boost?

The 8th Pay Commission is expected to benefit nearly 11 million people—including around 4.4 million central government employees and 6.8 million pensioners. Once implemented, it will lead to a hike in their basic pay, allowances, and retirement benefits.

Can the 8th Pay Commission Be Delayed?

Although the government has announced the 8th Pay Commission, key steps like appointing a chairman, members, and finalising the Terms of Reference are still pending. This delay has raised doubts about whether the new pay structure can actually roll out by January 2026. Ambit Capital points out that the 7th Pay Commission took about 18–24 months to implement. So, if the process gets pushed further, the 8th Pay Commission may not come into effect until FY2026–27.//

How Much Were the Previous Hikes?

Pay hikes have varied in the past. The 6th Pay Commission in 2006 brought a big jump overall pay and allowances rose by about 54 per cent. In contrast, the 7th Pay Commission in 2016 offered a smaller hike: basic pay increased by 14.3 per cent, and with allowances, the overall rise in the first year was around 23 per cent.

How Government salaries are calculated

A government employee’s pay has many parts, basic pay, dearness allowance (DA), house rent allowance (HRA), transport allowance (TA), and other small benefits. Over time, the share of basic pay has fallen from 65 per cent of the total package to about 50 per cent, with other allowances taking up more. Pensioners will also benefit from the changes, but since they don’t receive allowances like HRA or TA, the hike will mostly reflect in their basic pay and Dearness Allowance (DA).