New Delhi, May 16: With the announcement of the 8th Pay Commission by the Modi government, anticipation among nearly 1.2 crore central government employees and pensioners is building, especially around the fitment factor—a critical multiplier used to revise basic pay. Discussions have intensified, with employee unions demanding the fitment factor be set at 2.86, a move that could lead to a substantial hike in salaries and pensions.

The Financial Express reports that the Terms of Reference (ToR) for the new commission are likely to be released in the coming weeks. Following this, the appointment of the chairman and other key members will take place. The Finance Ministry has already issued two circulars for filling 40 commission posts, mostly through deputations. 8th Pay Commission: Know Estimated Salary Hike for Central Govt Employees If Fitment Factor Remains at 2.86.

However, sources indicate that meeting the 2.86 demand may be difficult due to the heavy financial burden it could impose. If the government settles on a more moderate figure—say, 1.92—the minimum basic pay could rise to approximately Rs 34,560. Experts caution, though, that much of this increase might offset current Dearness Allowance (DA) and Dearness Relief (DR), resulting in a marginal rise in net take-home pay. 8th Pay Commission: Despite 2.86 Fitment Factor, Central Govt Employees May See Modest Salary Hike – Here’s the Reason.

Historical trends show a mixed picture. The 6th Pay Commission in 2006 offered a hefty 54% hike with a 1.86 factor, while the 7th Pay Commission in 2016 introduced a 2.57 factor but delivered only a 14.2% net hike due to DA/DR adjustments.

Ultimately, the final outcome will hinge on inflation, fiscal space, and political will. While expectations are high, the true benefits of the 8th Pay Commission will become clear only once the government finalises the fitment factor and other terms.

(The above story first appeared on LatestLY on May 16, 2025 02:04 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).