
8th Pay Commission: Expected Salary Hikes for Central Government Employees Explained
January 30, 2025: The Union Cabinet has approved the formation of the 8th Pay Commission, which will propose salary and pension revisions for central government employees. Expected to be implemented next year, the recommendations will be reviewed by the government following submission. This revision will build upon the current structure established by the 7th Pay Commission in 2016, with a key focus on the ‘fitment factor.’
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The fitment factor determines how much the basic pay and pensions will increase. Under the 7th Pay Commission, the fitment factor was set at 2.57, increasing Level 1 salaries from ₹7,000 (under the 6th Pay Commission) to ₹18,000 in 2016. This basic pay further increased when dearness allowance (DA), house rent allowance (HRA), and other benefits were added, raising the total to ₹36,020.
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Reports indicate that the fitment factor may rise to 2.86 under the 8th Pay Commission, potentially boosting the basic pay in Level 1 from ₹18,000 to ₹51,480, with corresponding increases across Levels 2-10.
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These anticipated hikes are expected to provide significant financial relief and motivation for central government employees. With the fitment factor adjustment as a key driver, the 8th Pay Commission recommendations are set to reshape salaries and pensions in line with current economic conditions.
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