Central government employees across India are eagerly waiting for the implementation of the 8th Pay Commission recommendations. The new pay commission is expected to bring a significant hike not only in the salaries of employees but also in the pensions of retirees. According to the government’s pension portal, as of October 30, 2025, there are 68.72 lakh pensioners in India, including civilians, defence personnel, and employees from departments like railways and telecommunications.
Fitment Factor to Play a Key Role
The fitment factor will play a crucial role in determining the extent of increase in pensions and salaries. This factor acts as a multiplier used to calculate the revised pay or pension under a new pay commission. For the 7th Pay Commission, the fitment factor was set at 2.57, meaning that basic salaries and pensions increased by approximately 2.57 times compared to the 6th Pay Commission.
For the 8th Pay Commission, the new fitment factor will be decided once the Union Cabinet approves the commission’s recommendations. If the government increases the fitment factor from 2.57 to 3.0 or 3.68, pensioners could witness a nearly twofold rise in their basic pension.
Formation of the 8th Pay Commission
Recently, the Central Government approved the rules and terms of reference for the formation of the 8th Central Pay Commission. The commission has been tasked with submitting its final report within 18 months, though it may provide interim reports during this period.
The recommendations of the commission are expected to come into effect from January 1, 2026. The commission will be chaired by Retired Supreme Court Judge Ranjana Prakash Desai, who has been entrusted with leading the panel and preparing comprehensive recommendations for pay structure revisions, allowances, and pension enhancements.
What to Expect
Once implemented, the 8th Pay Commission is likely to benefit millions of employees and pensioners across the country. With rising inflation and increased living costs, this revision aims to provide better financial stability and improve the standard of living for government employees and retirees alike.
