8th Pay Commission Latest News: Salary Hike, Fitment Factor, and More
Published on May 14, 2025 | By Your Name
The 8th Pay Commission has sparked excitement among millions of central government employees and pensioners in India. With the government accelerating preparations, here’s everything you need to know about the latest updates, expected salary hikes, fitment factor, and implementation timeline.
What is the 8th Pay Commission?
The 8th Pay Commission is a government-formed panel tasked with revising the salaries, allowances, and pensions of over 48 lakh central government employees and 68 lakh pensioners. Announced in January 2025, it aims to address rising costs of living and inflation, ensuring financial relief for government workers. The commission is expected to be formally set up by mid-May 2025, with recommendations likely effective from January 1, 2026. Financial Express
Latest Updates on the 8th Pay Commission
- Formation Timeline: The Terms of Reference (ToR) for the 8th Pay Commission are expected to be finalized within 2-3 weeks, with the panel likely set up by the second or third week of May 2025. Zee News
- Appointments: The Finance Ministry has initiated the process to fill 42 key positions, including the chairperson and members, with 35 posts on a deputation basis. Official announcements are expected soon. Financial Express
- Fitment Factor Discussions: Talks on the fitment factor, a critical component for salary and pension revisions, will begin after ToR approval. Speculated fitment factors range from 1.92 to 2.86. NDTV Profit
- Implementation: The commission’s report is anticipated by mid-2026, with salary and pension revisions potentially retroactive from January 1, 2026, including arrears. News18
Expected Salary Hike and Fitment Factor
The fitment factor determines the multiplier applied to the existing basic pay to calculate the revised salary. Under the 7th Pay Commission, the fitment factor was 2.57. For the 8th Pay Commission, projections suggest a range between 1.92 and 2.86. Here’s an example:
- Current Basic Pay: Rs 50,000
- Fitment Factor 2.86: Revised Basic Pay = Rs 50,000 × 2.86 = Rs 1,43,000
- Fitment Factor 1.92: Revised Basic Pay = Rs 50,000 × 1.92 = Rs 96,000
These calculations are projections, and actual figures may vary based on the final fitment factor and Dearness Allowance (DA) merger. Zee Business
Impact on Pensioners
The 8th Pay Commission will also revise pensions, benefiting over 68 lakh pensioners. The commission is expected to focus on pension parity and timely disbursement, with revised pensions calculated based on the new fitment factor. Goodreturns
Potential Changes to CGHS
There’s buzz that the Central Government Health Scheme (CGHS) might be replaced with a new healthcare program as part of the 8th Pay Commission’s recommendations. Previous commissions have suggested phasing out CGHS for a more comprehensive scheme, and discussions are ongoing. Moneycontrol
FAQs About the 8th Pay Commission
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With the 8th Pay Commission set to bring significant changes, central government employees and pensioners are eagerly awaiting official announcements. Bookmark this page and follow our blog for the latest updates on salary hikes, fitment factors, and more.
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