The salary structure of central government employees was drastically changed in the last pay commission. Further changes of the kind will be attempted through the proposed 8th CPC, which is scheduled to be enforced from January 2026. The fitment factor will be a very important part of that exercise, as it would define, in effect, the new pay scales.
Understanding Fitment Factor
It is a multiplier of the employee’s present basic pay and is applied to determine the pay payable to an employee under the new structure. For example, under the 7th CPC, the pay revision was made by applying a factor of 2.57, following which there was a huge uplift in salary and pension. Likewise, the 8th CPC fitment factor is anticipated to hugely impact the revised pay scales.
Increase in Salary: Forecast
Reports indicate that a fitment factor of 1.92, if adopted by the 8th CPC, would increase the minimum pay for central government employees from ₹18,000 presently to ₹34,560 (an approximate 92% increase). Likewise, pensions would evidence similar changes, with the minimum pension being raised from ₹9,000 to ₹23,130. However, there are employee representatives who are asking for a higher fitment factor of about 2.57 to better suit the current economic situation and employee expectations.
Implementation Timeline
The 8th CPC is scheduled to begin work in April 2025, with the final report expected by November 2025. Subject to acceptance of its recommendations, the pay revision may be implemented by January 2026; however, this is also clouded with rumors of delay that seem to push the implementation into the next financial year 2027.
Conclusion
The proposed increase in minimum salary under the 8th Pay Commission is by 92%. This will be a major development for central government employees. The changes have not yet been finalized, but are designed to improve the financial position of government employees and pensioners. This reflects the government’s intent to satisfy the changing needs of its workforce.
