The 8th Pay Commission, which will decide the new pay structure for central government employees from January 2026, may not bring the big raise many are hoping for.
Reports suggest the fitment factor, used to calculate revised salaries, could be around 1.8, leading to only about a 13 per cent increase.
This is lower than the 14.3 per cent hike given under the 7th Pay Commission, as per a report by The Economic Times.
What is the fitment factor?
It’s a number used to multiply the current basic pay to set the new salary. A higher factor, like 2.86, could mean a 40–50 per cent hike. A lower one, like 1.8, means a much smaller raise.
In July 2025, the Dearness Allowance (DA) is expected to go up by about 3 per cent, from 55 per cent to 58 per cent. This will be the last DA hike under the 7th Pay Commission.
From January 2026, the DA will reset to zero. DA hikes are usually paid with a 2–3 month delay, along with arrears.
Possible delay in rollout
Although the new pay will be effective from January 2026, the actual increase might not come until 2027, since the government has yet to appoint a committee or set terms of reference.
Employees will get arrears from January 2026 until the new salaries are paid.
Depending on the final decision, salaries could go up anywhere between 13 per cent and 50 per cent. However, factors like inflation, budget constraints, and possible delays could mean the hike is on the lower side.
