Latest News on 8th Pay Commission: Fitment Factor & Salary Hikes

The Government of India has constituted the 8th Central Pay Commission (CPC). The commission will review and revise the salaries, pensions, and service conditions of the government employees and pensioners. The government notified its Terms of Reference (ToR) on 3rd November 2025. They have confirmed that pension revision is part of the notified Terms of Reference, meaning the commission will review pensions as well.

The government has made some changes to the 7th Pay Commission framework. The changes include: 

• It will cover approximately 50.14 lakh employees and 69 lakh pensioners.
• It mandates the revision of pay scales, allowances, pensions, and service conditions.

There are still some uncertainties around its implementation, including the 8th Pay Commission implementation date. The things which are still unclear are: 

• The exact percentage increase in basic pay is not yet announced.
• House Rent Allowance (HRA), Travel Allowance (TA), medical reimbursement, and other allowances are not finalized yet.
• The exact cost and budget allocation (funding) still remain uncertain. 

Minister of State for Finance, Pankaj Chaudhary, informed Lok Sabha in a written reply about the constitution of the 8th CPC.

What is the Government’s Stance on the 8th Pay Commission? 

The government confirmed that the 8th CPC will include pension revision for retirees. This means the pensioners will also benefit from the changes recommended under the new structure. It also clarified that it is not considering any proposal to merge DA/DR with basic pay or pension.

What Might Change Under the 8th CPC?

As per the provisions of the 8th CPC, central government employees could see their base salary go up substantially. This provision will also revise pensions. The commission may additionally revise allowances like House Rent Allowance (HRA) and Travel Allowance (TA) to reflect inflation, rising living costs, and the updated salary structure.

8th Pay Commission Fitment Factor Hike: Possibilities and Speculation

Up until now, many experts and the media have speculated that the 8th CPC will adopt a fitment factor in the range of roughly 1.83-2.86 (some even cite 2.28-2.86). This suggests that the total salary may rise by an estimated 25–35% (or more) after adjustments to revised pay, allowances, and inflation.

A fitment factor multiplies an employee’s current basic pay by the new basic pay under a new Pay Commission. Let’s understand this with an example: 

If your current basic pay is Rs. 30,000

Fitment factor decided is 2.72 (hypothetical) 

Your New basic pay will be = 30,000 × 2.72 = Rs. 81,600

The resolution suggests the 8th Central Pay Commission will submit its recommendations within 18 months of its publication. The commission may also submit interim reports if required. The government will decide the implementation timeline, budget, and rollout after examining the 8th Pay Commission’s guidelines. That’s when the 8th Pay Commission salary hikes will kick in for parties affected.

Comparison Table As Per 8th Pay Commission Employees’ Salary Slab 

The 8th Central Pay Commission provisions will lead to a salary hike for the government sector salaried employees. The following table shows a potential hike in salaries for different levels of government employees.

Category	7th CPC Basic Pay	8TH CPC Basic Pay
Level 1	Rs. 18,000	Rs. 22,500 – Rs. 24,000
Level 6	Rs. 44,900	Rs. 55,000 – Rs. 60,000
Level 10	Rs. 78,800	Rs. 95,000 – Rs. 105,000

Note: This is an expected hike based on the speculations of the media and experts. The original amount may vary based on the government provisions and fitment factor.

Who Will Benefit From the 8th Pay Commission Latest News?

The 8th Pay Commission will affect a wide range of beneficiaries across the government sector. The group listed below will directly benefit from the 8th CPC provisions:

• Regular Central Government Employees: A higher fitment factor and revised pay matrix under the 8th CPC could significantly raise their basic pay, improving their overall salary.
• Retired Employees: The new guidelines also consider revising pensions and retirement allowances, which will directly impact retired employees.
• Newly Recruited: For recruits, the 8th CPC could mean a higher entry-level basic pay right from the start, along with improved allowances. 
• Public Sector Units (PSUs): There might be a spillover effect on these sectors. PSUs and state governments may have to revise pay scales to maintain parity. 

8th CPC Timeline: Key Events & Next Steps

Look at the timeline frame of the 8th Central Pay Commission to stay updated on key events so far and what to expect in the near future.  

• October-November 2025: The Cabinet approves the Terms of Reference (ToR) for the 8th CPC.

• November 2025: The government formally constituted the 8th CPC.
• November 2025- April/May 2026: Commission works, consults stakeholders, and decides on fitment factor, allowances, pensions, etc. 
• 2026 (Expected): Possible roll-out of revised pay, allowances, and pensions, depending on government approval and budget allocation

Conclusion

The 8th Central Pay Commission will significantly change the government payroll structure. The speculations point toward a positive rise for both employees and pensioners. Although the government has not yet announced major details such as the revised pay matrix and allowance structure, current trends indicate favorable adjustments.

The government will implement the changes immediately after the commission completes its work and approves the recommendations.

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Frequently Asked Questions (FAQs)

1. What is the 8th Pay Commission news?

The 8th CPC was formally constituted in November 2025, and its Terms of Reference (ToR) were notified, defining the commission’s mandate. It covers around 50 lakh central government employees and about 69 lakh pensioners, including industrial and non-industrial staff, All India Services, and defence personnel.

2. Will the 8th CPC increase salary in 2026?

Salary increases can only begin after the commission submits its recommendations and the government approves them. Media reports suggest the rollout may happen in late 2026 or early 2027, so while some increments may appear in 2026, the bulk of the increase is likely after official approval and implementation. The timing will also depend on budget allocations and administrative readiness.

3. How much salary hike is expected?

Analysts and experts predict an overall hike of around 30–35%, though actual numbers will depend on the final fitment factor and revised pay matrix. Higher-level employees may see slightly smaller percentage gains but more in absolute terms, while entry-level staff could benefit from a higher relative increase. Allowances like HRA and TA, linked to basic pay, will also rise proportionally.

4. Will the government merge DA with basic pay?

The government has ruled out merging Dearness Allowance (DA) or Dearness Relief (DR) with basic pay/pension under the 8th CPC. DA (for current employees) and DR (for pensioners) will continue to be paid separately and adjusted periodically based on inflation. While some employees and pensioners had hoped for a merger to permanently increase pay/pension, this is not under consideration.

5. When will the 8th Pay Commission report be submitted?

The commission has a maximum of 18 months from its constitution to submit its report. Since it was formed in November 2025, the final recommendations are expected by mid‑2027. Once submitted, the government will review and approve the proposals, after which the revised pay, allowances, and pensions will be implemented.

6. Will pensioners get a revision under the 8th CPC?

Yes, pension revision is explicitly included in the 8th CPC’s Terms of Reference. Pensioners can expect higher pensions and adjustments in DR based on the new pay structure. However, the exact benefit depends on the final pay matrix, fitment factor, and whether DA/DR rates are adjusted for inflation post-implementation.

7. Will allowances like HRA, TA, and other benefits increase?

The government is likely to increase most allowances linked to basic pay proportionally. It will recalculate HRA, TA, and other special allowances based on the revised pay matrix to ensure employees’ overall take-home salary reflects the new basic pay and current cost-of-living.

8. Will the government give arrears (back pay)?

Yes, once the government approves and implements the revised pay scales, it will pay employees and pensioners arrears for the period between the effective date of the 8th CPC and the actual rollout. The arrears will include differences in basic pay and allowances.

9. Does the 8th CPC affect state government employees?

Primarily, the 8th CPC applies to central government employees and pensioners. However, state governments that align their pay scales with central norms may revise their own pay/pensions in response.

10. Could the government delay the implementation beyond 2026?

Yes, given the review, approval, and budget allocation process, full rollout may extend into late 2026 or even 2027. Administrative formalities and final approval timelines often cause delays in previous pay commission implementations.