The 8th Pay Commission was endorsed by the Union Cabinet on January 16, 2025 to set new salary benchmarks for central government employees. The National Council-Joint Consultative Machinery (NC-JCM) has called for a fitment factor of at least 2.57 or more as was recommended by the 7th Pay Commission. The fitment factor is used to calculate the salary revision and hence 2.57 would mean a 157% increase.
This would mean that if accepted, the minimum salary would be increased from ₹18,000 to ₹46,260 per month. Similarly, the minimum pension would increase from ₹9,000 to ₹23,130. Some reports also mention demands for a 2.86 fitment factor, but former finance secretary Subhash Garg termed it as unrealistic and suggested 1.92 instead.
If the government accepts a 1.92 fitment factor, the minimum salary will still go up to ₹34,560, thus increasing by 92%. However, NC-JCM secretary Shiv Gopal Mishra has said that the factor should not be less than 2.57, claiming that the current methods of calculation do not include some of the new costs, such as the cost of the internet.
The fitment factor of the 7th Pay Commission was also recommended on the basis of the 15th Indian Labour Conference resolution of 1957 and Dr. Aykroyd’s formula for the minimum living wage which only included essential commodities. Due to changes in economic status, employees have requested for review of the fitment factor to a level that better captures the current cost of living.
The implementation of the 8th Pay Commission is expected to take effect from January 1, 2026 but there are fears it may be rescheduled. Central government employees are now waiting for the final decision on their new salary.
