8th Pay Commission: How much salary increase can be expected?

For government employees, a salary hike often feels like a festive bonus, arriving just in time to ease financial pressures. The announcement of the 8th Pay Commission is no different.

With rising inflation making it harder to manage monthly expenses, the news of the 8th Pay Commission brought hopes of a pay hike for central government employees.

The Union Cabinet approved the establishment of the 8th Pay Commission on Thursday. Union Minister Ashwini Vaishnaw confirmed the decision and said that the commission would be formed soon to revise the pay structure for central government employees and pensioners.

One of the most pressing questions is the expected hike in salaries and how the hike will be calculated.

According to experts, the fitment factor, which plays a key role in determining pay increases, may be set between 2.5 and 2.8 times the current basic pay. This means that government employees earning a basic pay of Rs 18,000 could see their salaries increase to Rs 45,000, providing a much-needed boost.

Krishnendu Chatterjee, Vice President and Business Head at TeamLease, shared insights on the expected changes with the news portal, India Today Digital.

“Considering the inflation factor, there are indications that fitment factor for salary hike may stay between 2.5 - 2.8 times of their current salaries, which will give a significant boost to employee salaries between 40k - 45k at the current base of 18k" said Chatterjee.

To estimate the revised salary, employees can multiply their current basic pay by the fitment factor.

"Multiply the Basic Pay by 2.5 - 2.8 times," said Chatterjee.

For example, if an employee’s basic pay is Rs 25,000 and the fitment factor is 2.7, the revised salary would be Rs 67,500. This formula helps employees gauge the potential increase in their pay under the 8th Pay Commission.

The final salary hike will depend on various factors, including inflation adjustments and prevailing market rates. Inflation plays a significant role as the commission aims to ensure that the revised pay structure addresses the rising cost of living.

The 8th Pay Commission will likely build upon the changes introduced by the 7th Pay Commission, which came into effect in January 2016.

The 8th Pay Commission is expected to complete its recommendations by the end of 2025.