8th Pay Commission Could Increase Central Government Salaries by Up to 34 %, Fitment Factor Key
Commission
The forthcoming 8th Pay Commission is poised to raise central government employees’ salaries by approximately 30-34 %, with a fitment factor ranging between 1.83 and 2.46 expected to determine the exact hike.
New Delhi | October 29, 2025: The much-anticipated 8th Central Pay Commission (CPC) is generating intense interest as central government employees and pensioners await recommendations that could lead to substantial salary revisions. According to recent reports, the salary hike under the 8th CPC may range between 30 % and 34 %, predicated on a fitment factor likely placed between 1.83 and 2.46.
The fitment factor—a multiplier applied to the existing basic pay—is central to determining the revised salaries. For example, if the factor is 2.15 and an employee’s current basic pay is ₹50,000, the new basic pay could reach ₹1,07,500 before allowances.
In addition, the 8th CPC is expected to recalibrate allowances such as House Rent Allowance (HRA) and travel allowance, while merging the Dearness Allowance (DA) into the basic pay structure.
Though the government has officially established the commission, its final report and implementation timeline are still pending. Sources suggest that the recommendations could be implemented starting January 1, 2026, but delays remain possible
For employees, the jump in basic pay will also raise their allowance base, potentially boosting take-home salary and pension. Pensioners, too, stand to benefit significantly as their retirement benefits are redetermined under the revised pay structure. Analysts caution, however, that actual gains will depend on the final fitment factor approved, as higher factors could impose substantial fiscal burden on the government.
With over a crore employees and pensioners in the mix, the 8th Pay Commission’s outcome is poised to reshape India’s government compensation landscape.
