New Delhi, May 14: The Indian government’s announcement of the 8th Pay Commission in January 2025 has sparked intense speculation, especially regarding the fitment factor that will determine revised salaries for over 1.2 crore central government employees and pensioners. The fitment factor is crucial as it forms the basis for calculating new basic pay under the pay commission.

As per Financial Express sources, the Centre is expected to soon release the Terms of Reference (ToR) for the commission. Once finalized, key appointments, including the Chairman and core members, will follow. The Finance Ministry had recently issued circulars indicating the appointment process for 40 officials, many on deputation from various departments. 8th Pay Commission: Revised Fitment Factor May Offer Marginal Pay Adjustment for Government Employees.

Employee unions have demanded a fitment factor of 2.86, which would significantly raise salaries and pensions. However, former Finance Secretary Subhash Garg stated such a steep increase may not be feasible. Experts suggest the factor might be closer to 1.92. If adopted, the minimum basic salary could increase to around INR 34,560. 8th Pay Commission: Know Estimated Salary Hike for Central Govt Employees If Fitment Factor Remains at 2.86.

It’s important to note that much of the increase under previous commissions accounted for inflation adjustment. For instance, the 7th Pay Commission recommended a 2.57 fitment factor, yet real salary hikes were only around 14.2%.

Currently, about 47 lakh employees and 65 lakh pensioners await the ToR finalization and panel formation. The 8th Pay Commission’s implementation is expected from January 2026, after the 7th Pay Commission term concludes in December 2025. The actual benefit will depend on balancing inflation with real income gains.

(The above story first appeared on LatestLY on May 14, 2025 03:05 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).