There is very important news for central government employees. Millions of government workers are currently waiting for two things: how much their salary will increase on July 1, and when the 8th Pay Commission will be implemented. The Modi government announced the formation of the 8th Pay Commission in January 2025. Since then, employees have been hoping that the government will soon declare its implementation.
Although several months have passed, the government has not yet given any clear update on this matter. Meanwhile, people are now asking how much the salary will increase if the 8th Pay Commission is applied. It is being said that the basic salary of many employees may rise from ₹40,000 to ₹1,00,000.
Salary May Increase by Up to ₹1 Lakh!
Many believe that the Eighth Pay Commission will be implemented from January 1, 2026. Meanwhile, the government has received suggestions to merge certain employee pay levels. It is expected that the fitment factor may be fixed up to 2.86, which could increase the basic salary of central employees from ₹40,000 to ₹1,00,000. The revised pay, pension, and allowances will benefit over 50 lakh employees and about 65 lakh pensioners.
What Will the Eighth Pay Commission Do?
This commission will review salary and pension structures. It will focus on important points like the fitment factor and minimum wage rules. Lakhs of employees and pensioners are eagerly waiting for its implementation, hoping it will bring positive changes in line with today’s economic conditions.
Official Announcement Made
On January 16, 2025, Prime Minister Narendra Modi and the Union Cabinet approved the formation of the Eighth Pay Commission. However, the terms of reference have not yet been made public. While Budget 2025 includes several tax-related proposals, it does not mention any specific spending related to this new commission.
Demand to Merge Pay Levels
Lawyers and employee representatives have suggested merging the following pay levels:
- Level 1 with Level 2
- Level 3 with Level 4
- Level 5 with Level 6
This suggestion aims to remove pay gaps and create a clearer salary structure. It could help reduce stagnation and promote better salary growth over time.
Fitment Factor Could Be Game-Changer
Currently, the basic pay for:
- Level 1 employees is ₹18,000
- Level 2 employees is ₹19,900
After merging, Level 1 employees may get more benefits, and the new pay scale is expected to start from this level. With a fitment factor of 2.86, the revised basic pay could reach around ₹51,480.
What Is Fitment Factor?
The fitment factor is a multiplier used to recalculate salaries and pensions under the new pay structure. This ensures that employees across all grades receive a fair and uniform increase. Though the final factor has not been confirmed yet, experts estimate it to be between 2.5 to 2.86. This could lead to huge hikes in pay, ranging from ₹40,000 to ₹1,00,000, depending on the employee’s grade.
Also Read
8th Pay Commission Big Update: Will Your Salary Jump to ₹85,800 Know What’s Changing
Breaking News: 8th Pay Commission to Increase Minimum Pension to ₹25,740 What It Means for You
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