8th Pay Commission: Expected vs Actual Salary! How Much Will You Get? From Basic Salary to Increment, Check Details

8th Pay Commission: The Modi government has provided significant salary relief for nearly 50 lakh central government employees and 65 lakh pensioners. On January 16, 2025, the government approved the 8th Pay Commission’s salary revision recommendations, including changes in allowances. As per media reports, the commission has suggested a fitment factor ranging between 1.92 and 2.86.

If the highest proposed fitment factor of 2.86 is approved, the minimum basic salary of a central government employee will increase from ₹18,000 per month to ₹51,480. Similarly, the minimum pension is expected to rise from ₹9,000 to ₹25,740 per month.

What is the Fitment Factor and How Does it Affect Salary?

The fitment factor is a crucial multiplier applied to the current basic salary to determine the revised salary under the new pay matrix. The central government officially announced the 8th Pay Commission in January 2025, with its final report expected by the end of the year.

Speculations about the salary hike are high among central government employees. According to a News18 English report, salaries could increase anywhere between 10% and 30%, depending on the final fitment factor.

7th Pay Commission vs 8th Pay Commission: How Much Salary Hike is Expected?

Under the 7th Pay Commission, the fitment factor was set at 2.57, which increased the minimum basic salary from ₹7,000 to ₹18,000. Experts widely anticipate that the 8th Pay Commission will propose increasing the fitment factor to 2.86. If implemented, this will result in a substantial salary hike, with the minimum basic salary reaching ₹51,480—a 186% increase from the current ₹18,000.

Apart from salary hikes, central government employees also benefit from additional allowances such as Dearness Allowance (DA), which plays a vital role in determining the overall salary structure.

Dearness Allowance (DA) Hike and its Impact on Salary Revision

As of July 1, 2024, the Dearness Allowance (DA) stands at 53%. Experts predict that before finalizing the 8th Pay Commission’s recommendations, the government will consider two more DA hikes—one on January 1, 2025, and another on July 1, 2025. These increments could significantly impact the final salary calculations for central government employees under the new pay structure.

Will the 2.86 Fitment Factor Be Approved? What Experts Say

Former Finance Secretary Subhash Chandra Garg recently commented on the proposed salary hikes, stating that a fitment factor of 2.86 is highly ambitious and unlikely to be approved. He explained that the Pay Commission will finalize the fitment factor by analyzing the Basic Salary and Dearness Allowance (DA) as of January 1, 2026.

If the DA increases by 7% by January 2026, it could reach around 60%, affecting the final salary hike. The government will make a decision based on financial viability and economic factors before approving the new pay structure.