Millions of government employees are waiting eagerly for the 8th Pay Commission to come into effect. The commission could raise salaries and pensions by 30-34%, benefiting nearly 11 million people, according to a report by Ambit Capital, reported The Economic Times.
WHEN WILL IT START?
The new pay scale is expected to kick in from January 2026. But for that to happen, the Pay Commission’s report must first be prepared, sent to the government, and approved. So far, only the announcement has been made; the finer details like .
WHO WILL BENEFIT?
The 8th Pay Commission could benefit around 11 million people, including about 4.4 million central government employees and nearly 6.8 million pensioners. Once approved, the changes will raise their basic pay, allowances, and retirement benefits.
WHAT IS THE FITMENT FACTOR?
One important part of deciding new salaries is the fitment factor. This is a number used to multiply the current basic pay to calculate the new one. For example, the 7th Pay Commission used a factor of 2.57. Back then, it raised the minimum basic pay from Rs 7,000 to Rs 18,000 per month.
This time, the research report suggests the fitment factor could be between 1.83 and 2.46. The exact figure will play a big role in how much employees and pensioners get as a hike.
A LOOK AT PAST HIKES
Earlier Pay Commissions have given different levels of hikes. The 6th Pay Commission (2006) brought a jump of about 54% in overall pay and allowances.
But the 7th Pay Commission (2016) offered a more modest hike, of 14.3% in basic pay and about 23% in the first year when other allowances were added.
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% of the total package to about 50%, with other allowances taking up more.
Pensioners will see similar changes. However, they don’t get HRA or TA, so the hike mainly affects their basic pay and DA.