New Delhi, 26th July 2025: Discussions are ongoing regarding the formation of the 8th Pay Commission. According to Union Minister of State for Finance Pankaj Chaudhary, the central government is actively working on this matter in coordination with state governments, the Finance Ministry, and related departments.
However, as per a new report, the expected salary hike under the 8th Pay Commission may be lower than the 7th Pay Commission. Currently, the minimum basic salary of central government employees is Rs 18,000. Under the 8th Pay Commission, this may increase to ₹32,000.
A report by COGKN Institutional Equities suggests that the salary hike under the 8th Pay Commission could be around 13Percent, compared to 14.3 Percent under the 7th Pay Commission. It also indicates that the fitment factor under the 8th Pay Commission may be set at 1.8, while it was 2.57 in the 7th. This means the overall increase in basic salary will be lower than the previous commission.
Notably, whenever a new Pay Commission is implemented, the fitment factor is used as a multiplier to revise the basic pay of employees.
Salary Could Increase to Rs 32,000
For example, if an employee’s current basic pay is Rs 18,000 and the fitment factor is 1.8, the revised basic pay would be Rs 32,400 (i.e., Rs 18,000 × 1.8). This figure does not include HRA or DA, which are calculated separately and added to the total take-home salary.
On Tuesday, Minister Pankaj Chaudhary informed Parliament through a written reply that opinions are being collected from key stakeholders, and that once the government issues a formal notification, the Chairperson and Members of the 8th Pay Commission will be appointed.
Every 10 years, the government revises the salaries of employees and pensions of pensioners based on changes in the cost of living. Accordingly, salary revisions under the 8th Pay Commission are expected around 2026. However, experts believe there may be delays in the process.
Under the 7th Pay Commission, the minimum basic salary was increased from ₹7,000 to Rs 18,000, with a fitment factor of 2.57 being applied to revise salaries and pensions.
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