8th Pay Commission: Central Govt Employees Will Expect Salary, Pension Hikes
Union Cabinet approves 8th Pay Commission: This will be formed from January 1, 2026, and covers over 50 lakh Central government employees, whose salaries and pensions will also change. Know how previous pay commissions have affected salaries and what to expect from the 8th Pay Commission.

8th Pay Commission: Union Minister Ashwini Vaishnaw said that the Union Cabinet on January 16, 2025, approved the 8th Pay Commission for upgrading the salaries as well as pensions of more than 50 lakh Central government employees. It is expected to be implemented from January 1, 2026, along with the new year's economic policies.
Impact of the 8th Pay Commission
While the exact salary and pension hike percentages under the 8th Pay Commission are yet to be revealed, past commissions offer a glimpse into the potential benefits. A key element influencing the revisions is the fitment factor, a multiplier applied to current salaries to determine the revised pay scales.
Also Read: 8th Pay Commission: Modi Cabinet Approves Proposal Ahead of Budget 2025
What Is the Fitment Factor?
In all the pay commissions, the fitment factor is central to salary and pension revisions. It is a multiplier that works on the present basic salary to get the revised pay. For example:
- Present Basic Salary: ₹40,000/month
- Suppose fitment factor is 2.5
- Revised salary: ₹40,000 x 2.5 = ₹1,00,000/month
Fitment factor under the 8th Pay Commission will be published along with the recommendations and, therefore, greatly affect the salaries of employees as well as pensions.
Salary and Pension Increases by Previous Pay Commissions
7th Pay Commission -
- Fitment Factor: 2.57
- Minimum Basic Salary: ₹7,000 to ₹18,000
- Pension Increase: Minimum pension increased from ₹3,500 to ₹9,000
- The 7th Pay Commission brought about a lot of structural changes. For example, health insurance for employees and pensioners was introduced. So, their total benefits increased.
6th Pay Commission:
- Fitment Factor: 1.86
- Minimum Basic Salary: ₹2,750 to ₹7,000
- Pension Increase: Minimum pension increased from ₹1,275 to ₹3,500
- The 6th Pay Commission also took the issue of inflation into consideration. It raised the cost of living allowance from 16% to 22%.
Statement of the Prime Minister
Prime Minister Narendra Modi has responded to the move on micro blogging site X:
We are all proud of the efforts of all Government employees, who work to build a Viksit Bharat. The Cabinet's decision on the 8th Pay Commission will improve quality of life and give a boost to consumption. https://t.co/4DCa5skxNG
— Narendra Modi (@narendramodi) January 16, 2025
The 8th Pay Commission will likely increase salaries, pensions, and allowances and thereby increase financial security among government employees. Positively impacting the economy through increased consumer spending, stay tuned for its recommendations.