Are lakhs of government employees about to face disappointment? The long-awaited 8th Pay Commission is still under discussion, but if the latest report is to be believed, the expected salary hike might be much lower than earlier hopes. Let’s dive into the full story—what’s changing, what’s not, and what it means for you.
What’s the Buzz Around the 8th Pay Commission?
Central government employees and pensioners across India have been eagerly awaiting updates on the 8th Pay Commission. With rising inflation and living costs, expectations for a substantial increase in basic pay and pension are natural.
But a recent report by Kotak Institutional Equities has raised serious concerns—suggesting that the salary hike might be only around 13%, which is less than the 14.3% hike provided during the 7th Pay Commission.
Fitment Factor May Drop: From 2.57 to 1.8?
At the heart of this concern lies the fitment factor, which is the formula used to calculate new salaries. As per the Kotak report:
- 8th Pay Commission fitment factor (expected): 1.8
- 7th Pay Commission fitment factor: 2.57
This simply means that your existing basic salary would be multiplied by 1.8 to arrive at the new basic. But here’s the twist — your DA (Dearness Allowance) will reset to zero.
Let’s break it down with a relatable example
Real-Life Example: What Could Your New Salary Look Like?
If your current basic pay is ₹18,000, the new basic could go up to ₹32,400 using the 1.8 factor.
But right now, with 55% DA (₹9,900) added, the total comes to ₹27,900. So even though the basic pay increases, the net gain may not feel very significant, since the DA will restart from zero.
Similarly, for a basic salary of ₹50,000:
- Current salary with 55% DA: ₹77,500
- Proposed new basic: ₹90,000
- Real increase: Just ₹12,500
So while numbers may look bigger on paper, the real take-home benefit might feel underwhelming for many.
Employees Demand Fairness Like the 7th CPC
The National Council-JCM (Joint Consultative Machinery) has already raised concerns. Employee representatives are pushing for the same fitment factor of 2.57 used in the 7th Pay Commission, to ensure parity and fair treatment.
However, early signs suggest that the central government may not agree with this demand—aiming instead to keep the hike moderate.
So, When Will the 8th Pay Commission Actually Begin?
As per available information:
- The formal setup of the commission is expected in the coming months.
- Implementation timeline is tentatively around 1 January 2026.
- In case of any delay, the government might offer arrears to cover the gap period.
