Waiting for the 8th Pay Commission? Report says salary hike may be limited
The report said the financial impact on the Centre and states is expected to play a key role in the Commission's final recommendations.
- Jun 29, 2026,
- Updated Jun 29, 2026 5:06 PM IST
The 8th Central Pay Commission is likely to recommend a fitment factor close to 2.57, the same as the 7th Pay Commission, as the government looks at the financial impact of higher salaries and pensions, according to a report.
The fitment factor is used to calculate revised basic pay and pensions. It is one of the most important parts of every pay commission because it decides how much the salaries and pensions of central government employees and pensioners will increase.
Government likely to take a cautious approach
According to The Economic Times, early discussions suggest the Commission is taking a cautious approach because of the financial burden on both the Centre and state governments.
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"The exercise is now veering to discussions on the likely range of the fitment factor, consultations with state governments, and assessment of the fiscal impact of revised pay and pension structures," a senior government official aware of the discussions told The Economic Times.
The report said the financial impact on the Centre and states is expected to play a key role in the Commission's final recommendations.
Employee unions want a higher fitment factor
Employee unions have asked for a fitment factor of 3.83.
According to their submissions, this would increase the minimum basic salary to ₹69,000.
The process of submitting memorandums ended on June 15, completing formal representations from employee associations, pensioners and other stakeholders.
Commission to review feedback from states
The Commission will now study these submissions along with feedback from state governments.
The next round of consultations will begin with Uttar Pradesh, Odisha and West Bengal. Earlier meetings have already been held in Delhi, Ladakh, Jammu and Kashmir, Telangana, Maharashtra and other parts of the country as part of a nationwide consultation process.
After the consultations are completed, the Commission will prepare its final report, which will decide the revised pay and pension structure for central government employees and pensioners.
What happened under the 7th Pay Commission?
The 7th Pay Commission had recommended a fitment factor of 2.57, raising the minimum basic pay from ₹7,000 to ₹17,990.
The revision also increased the Centre's revenue expenditure to 9.9% in FY2016-17, up from 4.8% in the previous financial year.
The 8th Central Pay Commission is likely to recommend a fitment factor close to 2.57, the same as the 7th Pay Commission, as the government looks at the financial impact of higher salaries and pensions, according to a report.
The fitment factor is used to calculate revised basic pay and pensions. It is one of the most important parts of every pay commission because it decides how much the salaries and pensions of central government employees and pensioners will increase.
Government likely to take a cautious approach
According to The Economic Times, early discussions suggest the Commission is taking a cautious approach because of the financial burden on both the Centre and state governments.
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"The exercise is now veering to discussions on the likely range of the fitment factor, consultations with state governments, and assessment of the fiscal impact of revised pay and pension structures," a senior government official aware of the discussions told The Economic Times.
The report said the financial impact on the Centre and states is expected to play a key role in the Commission's final recommendations.
Employee unions want a higher fitment factor
Employee unions have asked for a fitment factor of 3.83.
According to their submissions, this would increase the minimum basic salary to ₹69,000.
The process of submitting memorandums ended on June 15, completing formal representations from employee associations, pensioners and other stakeholders.
Commission to review feedback from states
The Commission will now study these submissions along with feedback from state governments.
The next round of consultations will begin with Uttar Pradesh, Odisha and West Bengal. Earlier meetings have already been held in Delhi, Ladakh, Jammu and Kashmir, Telangana, Maharashtra and other parts of the country as part of a nationwide consultation process.
After the consultations are completed, the Commission will prepare its final report, which will decide the revised pay and pension structure for central government employees and pensioners.
What happened under the 7th Pay Commission?
The 7th Pay Commission had recommended a fitment factor of 2.57, raising the minimum basic pay from ₹7,000 to ₹17,990.
The revision also increased the Centre's revenue expenditure to 9.9% in FY2016-17, up from 4.8% in the previous financial year.