New Delhi, May 22: The central government is expected to soon approve the terms of reference for the 8th Pay Commission, with preparations already underway. Announced in January this year, the commission is scheduled to be implemented from January 1, 2026. This move is set to impact over 50 lakh central government employees and around 65 lakh pensioners, affecting salaries, pensions, and allowances.

A key component of pay revisions is the fitment factor—a multiplier used to uniformly revise pay across all levels. Under the 7th Pay Commission, the fitment factor was 2.57, which increased the minimum basic salary from INR 7,000 to INR 18,000 and pensions from INR 3,500 to INR 9,000. A health insurance scheme was also introduced. 8th Pay Commission Latest Updates: From Salary Hike and Pension Increase to Fitment Factor, Here’s What To Expect.

For the 8th Pay Commission, the expected fitment factor is between 1.90 and 2.5, with most estimates leaning toward 2.5. If this holds true, government employees and pensioners can anticipate a substantial pay hike. 8th Pay Commission: What Could the New Fitment Factor Be and How Much Salary Hike Can Govt Employees Expect?

For example, if an employee currently earns a basic salary of Rs 40,000 per month, a 2.5 fitment factor would revise their basic pay to INR 1,00,000 per month. The actual increment will vary based on existing pay levels and the final approved factor.

The official fitment factor and revised pay structure will be confirmed once the 8th Pay Commission submits its recommendations. Until then, central government employees and pensioners can look forward to a potentially major financial boost starting in 2026.

(The above story first appeared on LatestLY on May 22, 2025 08:09 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).