The biggest good news has come for lakhs of central employees of the country. The government has announced the constitution of the 8th Pay Commission and its guidelines (Term of Reference). This means that now the way has been cleared for a bumper increase in the salaries, allowances and pensions of government employees. With the tenure of the Seventh Pay Commission coming to an end, the process of implementing the Eighth Pay Commission will now move forward rapidly.

Experts estimate that the commission may submit its recommendations to the government by April 2027 and Diwali 2027 Till this time it can be implemented.

How much will your salary increase? It’s all about ‘fitment factor’

Whenever a new pay commission comes, the most talked about thing is ‘fitment factor’. This is the multiplier by which your basic salary is decided. According to experts, the fitment factor in the Eighth Pay Commission 1.8 to 2.46 Is likely to remain between.

Let us understand this with an example. Suppose the basic salary of an employee is ₹18,000 Is:

• If the fitment factor is 1.82x:
  
  
  
  • New basic salary: ₹18,000 x 1.82 = ₹32,760
  
  
  • (About 14% increase of)
  
  
  
  


• If the fitment factor is 2.15x:
  
  
  
  • New basic salary: ₹18,000 x 2.15 = ₹38,700
  
  
  • (About 34% increase of)
  
  
  
  


• If the fitment factor is 2.46x:
  
  
  
  • New basic salary: ₹18,000 x 2.46 = ₹44,280
  
  
  • (About 54% increase of)
  
  
  
  

Dearness Allowance (DA) will become zero

It is important to keep one thing in mind here. Whenever a new pay commission comes into effect, the existing dearness allowance (DA) is merged into the new basic salary and the DA is calculated again. zero (0) Starts from. Actual increase in salary of employees after this adjustment 13-15 percent Can live around.

Why is the new pay commission implemented?

The government constitutes a new pay commission every 10 years. Its main objective is:

• To review salaries, allowances, bonuses and gratuities of employees and pensioners.


• To ensure that the salaries of government employees are at par with that of the private sector and public sector undertakings (PSUs).


• To increase the purchasing power of the employees, which will also strengthen the country’s economy.

Earlier, the 7th Pay Commission was implemented in 2016, in which the salary of employees increased by an average of 14-16%. Now employees are hoping that from the 8th Pay Commission they will get big relief in this era of inflation. If everything happens on time, then Diwali of 2027 will bring bumper happiness for the central employees.