8th Pay Commission Update: How Pay, Pensions And Fitment Factor May Change

8th Pay Commission Update: The 8th Pay Commission has become an important subject for central government employees and pensioners, as its recommendations will decide future salary structures and pension benefits. The Union government constituted the commission in October 2025, following the established practice of revising pay scales roughly every 10 years. Once implemented, the Commission's proposals are expected to impact income levels, retirement benefits and overall compensation across government services.

The 8th Pay Commission

The Pay Commission is a committee established by the Centre for reviewing and recommending change in the pay structure of its employees and pensioners. The 8th Pay Commission will examine existing pay levels, allowances and pension formulae keeping in mind economic conditions and the state of government finances.

Justice Ranjana Prakash Desai, former judge of the Supreme Court has been appointed as the chairperson of the commission. Professor Pulak Ghosh has joined as a part-time member, whereas Pankaj Jain has been appointed as the member secretary. The government has also finalised the Terms of Reference, which mention the areas to be studied by the commission and the framework it will be following in preparing its report.

How the Review Process will be Conducted

The Commission will consult different central government ministries and departments to gauge the existing pay structure and administrative requirements. It will also hold discussions with employee unions and staff associations, who are expected to submit demands relating to pay hikes, allowances and pension revisions.

In addition to the expectations of the employees, the Commission will analyse in detail the financial position of the central and state government. This is an assessment that is needed to ensure that the recommendations are realistic and can be implemented without excessive pressure being placed on public finances. After going through all the inputs and data, the Commission would submit a detailed report to the Centre.

Expected Timeline for Implementation

It is anticipated that the 8th Pay Commission will take about 18 months to finish its review and submit its recommendations. After the report is submitted, the government may take another six months to analyse the proposals and make the approved changes. As a result, the entire process from review to implementation could take up close to two years.

Why the Fitment Factor is Crucial

The fitment factor is one of the most closely watched aspects of any Pay Commission. It is a multiplier that is used for revision of basic pay of the employees. Under 7th pay commission, the fitment factor was fixed at 2.57, under which minimum basic pay has increased to Rs 18,000 from Rs 7,000.

For the 8th Pay Commission, the employee unions are pressing for a higher value of fitment factor at least 2.86. The final decision on this will have a direct impact on salary levels at all pay bands.

Potential Impact on Salaries and Pensions

If the fitment factor of 2.86 is approved, it might be estimated that it could increase the minimum basic significantly from the existing Rs 18,000. However, these figures are still indicative as the final revision will be a matter of recommendation from the final report of the Commission and the approval of the government. Pension amounts are also expected to be revised according to any change that happens in basic pay.

Final Outcome Still Pending

The final decision on salary hikes, pension revisions and the final fitment factor will be known to the public only after the 8th Pay Commission submits its report, and it is approved by the government. Until then, the central government employees and pensioners will have to wait to see how the new pay structure will impact their earnings until the next Pay Commission is constituted.