8th Pay Commission Latest News: Salary Structure & Fitment Factor Updates

The 8th Pay Commission has been a topic of discussion and anticipation among Indian government officials for some time. 

‍

Previously, the 7th Pay Commission brought significant changes to salary structures, benefits, and allowances. With the introduction of the 8th Pay Commission, it is expected to enhance the welfare of government employees. 

‍

8th Pay Commission Latest News

‍

Recent reports about the 8th CPC remain uncertain and unclear. The Union Cabinet approved the formation of the 8th Central Pay Commission in January 2025 to enforce its implementation by January 2026. 

‍

However, no appointment of the committee members has been initiated as of June 2025. Furthermore, the Terms of Reference (ToR) have also not been finalised. 

‍

Due to the unexpected delays, there is a lot of uncertainty among the government employees and pensioners. There are expectations that the implementation will be pushed until 2028.

‍

Changes in Salary Structure

‍

The salary structure under the 8th Pay Commission aims to address both the current needs of government employees and the future economic challenges. 

‍

The commission has proposed several changes that will enhance financial stability for employees. These include:

‍

• Higher Basic Pay: The new salary structure will include an increase in basic pay to keep pace with the growing inflation and the increasing cost of living.
  
  
• Revised Pay Scales: Various pay levels will see a revision, which is likely to lead to a significant salary hike for employees in different government departments.
  
  
• Modified Allowances: Special allowances such as Dearness Allowance (DA), House Rent Allowance (HRA), and other perks will be adjusted to reflect the changing economic conditions.
  
  

This revision will ensure that government employees' compensation reflects their evolving roles and responsibilities in the ever-changing economic landscape.

‍

Projected 8th Pay Commission Salary Pay Matrix

‍

The table below shows the expected salary hikes under the 8th CPC based on an estimated salary rise of 20%.

‍

‍

You can check your expected salary hike under the new central pay commission using our 8th CPC calculator.

‍

Fitment Factor under 8th Pay Commission

‍

One of the key aspects of the 8th Pay Commission recommendations is the fitment factor. The fitment factor is essentially a multiplier used to calculate the increase in basic pay for government employees. 

‍

For the 8th Pay Commission, there has been a significant revision in this aspect, aimed at improving the overall compensation package for employees.

‍

Reports suggest that the fitment factor will be increased from the current 2.57 times to approximately 3.00 times. 

‍

This increase will directly result in a higher basic salary for employees, which is expected to boost their overall earnings and bring them in line with inflation rates and rising living costs.

‍

This change will also impact pensioners, ensuring that their pensions are aligned with the revised salary structure.

‍

Salary Calculation under the 8th CPC

‍

One of the most frequently asked questions regarding the 8th Pay Commission is how the salary calculation will work under the new system. 

‍

The revised pay structure under the 8th Pay Commission will follow a more streamlined approach, making it easier for employees to understand their earnings.

‍

Dearness Allowance Calculation

‍

A key element in the salary calculation process will be the Dearness Allowance (DA), which is revised twice a year to keep pace with inflation. 

‍

The DA is calculated as a percentage of the basic pay and is designed to compensate employees for the increase in the cost of living.

‍

The 8th Pay Commission has suggested a substantial increase in the DA, based on the current inflation rates. 

‍

With the higher fitment factor, the DA will be more significant, providing employees with better financial protection against rising prices.

‍

The DA calculation will also follow a structured formula based on the All-India Consumer Price Index (AICPI) and will ensure that government employees' salaries reflect the current economic conditions.

‍

Conclusion

‍

The 8th Pay Commission's updates promise to bring significant relief to government employees in India, with changes in the salary structure, fitment factor, and DA calculation. 

‍

These revisions are expected to improve employees' overall financial security, making it easier for them to deal with rising inflation and the cost of living.

‍

If you're a government employee looking for an effective way to manage your finances and save more, consider using the Jar app. 

‍

The app allows you to invest in digital gold, giving you a smart way to secure your savings and build wealth. Download the Jar app today and start investing in your future!

‍