Mumbai, May 5: The 8th Pay Commission panel formation is expected to begin by May 2025, following the Centre’s recent approval. While the official setup is still awaited, Finance Minister Nirmala Sitharaman had earlier assured that the process would begin soon. Around 36 lakh central government employees and pensioners are eagerly awaiting the new panel, which is expected to recommend a fresh hike in salaries and pensions.

Once established, the panel is expected to begin its work without delay, aiming to recommend revisions in salaries and pensions. Many believe the government may expedite the process by the end of May, ensuring ample time to implement the changes before the current pay structure lapses on January 1, 2026. 8th Pay Commission: How Much Will Your Basic Salary Rise With 2.86 Fitment Factor? Check Details.

All About 8th Pay Commission Panel

Looking at past pay commissions, the panel is usually chaired by a retired Supreme Court judge or a senior bureaucrat. Members, including economists and specialists in public expenditure, pensions, and allowances, support the chairperson. Their main role is to advise the government on how much to revise salaries and pensions. They also provide key recommendations on adjusting the Dearness Allowance (DA) and determining the Fitment Factor. 8th Pay Commission Pension Calculation: Here’s What Pensioners Can Expect at 2.57 and 2.86 Fitment Factors.

What To Expect From 8th Pay Commission

According to estimates, the 8th Pay Commission could propose a salary increase of 40% to 50% for central government employees and pensioners. This would be based on a revised fitment factor, ranging from 2.28 to 2.86. If the upper limit is approved, an employee with a basic salary of INR 20,000 could see it rise to between INR 46,600 and INR 57,200.

(The above story first appeared on LatestLY on May 05, 2025 03:51 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).