8th Pay Commission May Offer Smaller Salary Hike: Fitment Factor Likely Lower Than 7th CPC
The 8th Pay Commission is expected to offer a 13% salary hike for central government employees, slightly lower than the 14.3% provided under the 7th Pay Commission. The projected fitment factor is 1.8, with implementation likely from January 2026
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Central government employees may receive a lower salary hike under the upcoming 8th Pay Commission, according to recent analysis. A report suggests the likely increase could be around 13%, marginally below the 14.3% hike offered by the 7th Pay Commission.
The key factor behind this smaller projected raise is a lower fitment factor. While the 7th CPC applied a fitment factor of 2.57, the 8th CPC may recommend a revised factor of 1.8, according to estimates from Kotak Institutional Equities.
The fitment factor is a multiplier used to calculate revised basic salaries. Though the 1.8 factor implies an 80% rise in basic pay, the overall salary growth appears smaller due to the resetting of the dearness allowance (DA), which starts again from zero after implementation.
For example, if an employee currently draws a basic salary of ₹18,000, the revised basic pay under the 8th Pay Commission could increase to approximately ₹32,400. However, the net increase in total salary—after adjusting for DA reset—translates to around 13%, rather than a full 80% spike.
The implementation of the 8th Pay Commission is expected from January 1, 2026, although a formal timeline has yet to be confirmed by the government. Discussions and consultations with stakeholders are already underway.
Despite the slightly lower hike, the 8th CPC still represents a significant financial improvement for lakhs of government employees. The commission will also influence allowances, pensions, and other employee benefits.
