8th Pay Commission: What’s new & how much salary hike to expect?
The Union Cabinet approved the 8th Pay Commission on January 16, 2025, to revise central government employees’ salaries. The National Council-Joint Consultative Machinery (NC-JCM) demanded a fitment factor of at least 2.57, similar to the 7th Pay Commission, or higher.
What is the fitment factor?
The fitment factor multiplies base salaries and pensions. A 2.57 fitment factor means a 157% salary hike. If approved, the minimum salary will rise from ₹18,000 to ₹46,260, and pensions will increase from ₹9,000 to ₹23,130.
Demand for a higher fitment factor
Some reports suggested a 2.86 fitment factor, but former finance secretary Subhash Garg dismissed it as unrealistic. He proposed a 1.92 fitment factor, which would raise the minimum salary to ₹34,560, reflecting a 92% hike.
Despite this, NC-JCM secretary Shiv Gopal Mishra insisted on at least a 2.57 fitment factor, arguing that outdated calculation methods don’t account for modern expenses like internet costs.
Historical context
The 7th Pay Commission used a 2.57 fitment factor based on the 15th Indian Labour Conference resolution (1957) and Dr. Aykroyd’s formula for a minimum living wage. These methods considered only essential commodities, ignoring modern necessities.
Implementation timeline
The 8th Pay Commission may take effect from January 1, 2026. However, speculation suggests possible delays.
