Mumbai, August 12: The 8th Pay Commission is expected to bring significant salary hikes for over one crore central government employees and pensioners. Although the commission has yet to be formally constituted, brokerage firms have begun forecasting potential salary hikes ranging widely from 13% to as much as 54%. These projections have sparked widespread discussion about the financial impact on government workers, many of whom rely heavily on pay revisions for improved living standards and inflation adjustments.

The pay hike will depend largely on the fitment factor decided by the commission, which multiplies the existing basic pay to arrive at the new salary structure. Additionally, the dearness allowance (DA), currently at 55% of the basic pay, resets to zero when a new pay commission comes into effect, influencing the actual increase in take-home pay. This could mean a sharper rise in effective salary compared to previous revisions, despite potentially lower fitment factors. With so much at stake, let’s know how much hike government employees will likely see in their salaries after the 8th Pay Commission takes effect. 8th Pay Commission Fitment Factor: What Central Government Employees Can Expect From Upcoming Salary Revision in 8th CPC.

Expected Salary Increases Under the 8th Pay Commission

As per Ambit Capital and Kotak Institutional Equities, the salary increase for central government employees could vary significantly based on the fitment factor applied to the basic pay. Ambit Capital projects a range between 1.83 and 2.46, which translates into salary hikes of 14% in the base case, 34% in the median scenario, and up to 54% in the upper case. On the other hand, Kotak Institutional Equities offers a more conservative estimate, suggesting a fitment factor of 1.8, which implies a 13% increase. 8th Pay Commission: What Are the Benefits and How Much Will Salaries Increase for Employees and Pensioners?

It is important to note that the fitment factor is multiplied by the basic pay, but the actual increase will be tempered by the DA resetting to zero when the new commission is implemented. Currently, the DA stands at 55%, which is considerably lower than the 125% seen before the rollout of the 7th Pay Commission. This lower DA level means the effective hike after the DA reset could be sharper this time, even with a lower fitment factor.

For example, a government employee earning INR 97,160 including allowances might see their salary rise to anywhere between INR 1,09,785 (13%) and INR 1,51,166 (54%), depending on the final fitment factor adopted by the government. The increase will only be confirmed once the 8th Pay Commission completes consultations and finalises recommendations.

(The above story first appeared on LatestLY on Aug 12, 2025 12:09 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).