Latest news with #8thCentralPayCommission
News18
10-07-2025
- Business
- News18
8th Pay Commission: Fitment Factor Might Be Fixed Between 1.83 And 2.46, Says Report
Last Updated: On fitment factor between 1.83 and 2.46, the minimum salary of central government employees may be fixed between Rs 32,940 and Rs 44,280, against the current Rs 18,000 a month. 8th Pay Commission Salary Hike: Even as the 8th Central Pay Commission is yet to be constituted, a report suggests that the fitment factor is expected to be fixed in the range of 1.83 to 2.46. Fitment factor is the multiplier used to revise basic pay in a new pay commission. 'As per back-of-the-envelope calculations, depending on the salary growth seen over different Pay Commissions, the range of fitment factors that the government could be looking at lies between 1.83 and 2.46," financial services firm Ambit Capital said in a report. What Is A Fitment Factor? The fitment factor is a multiplier used by the government to revise the basic salary of employees when a new Pay Commission is implemented. It helps determine the new pay by applying the factor to the existing basic salary. For example, if an employee's current basic salary is Rs 18,000 and the fitment factor is 2.0 (just for example), the revised basic salary would be Rs 36,000 (Rs 18,000 × 2.0). This does not include allowances like HRA or DA, which are calculated separately and increase overall take-home pay further. 8th Pay Commission: How Much Salary Hike Expected? Going by Ambit Capital's expectation of a fitment factor between 1.83 and 2.46, the minimum salary of central government employees may be fixed between Rs 32,940 and Rs 44,280, compared with the current Rs 18,000 a month. A fitment factor of 1.83 would raise the basic salary from Rs 18,000 to around Rs 32,940, while a factor of 2.46 would raise it to Rs 44,280. Ambit Capital in the report estimates that the 8th Pay Commission may result in a minimum 14% real hike in pay (including Basic Pay+DA) and a maximum of 54%. However, the maximum 54% hike in real pay is highly unlikely as the government could face significant financial challenges in implementing the same. 'While the government might consider a higher increase, potentially using it as a consumption stimulus, expecting a substantial 54% jump (as seen during the 6th Pay Commission) seems unlikely, since it could face significant financing challenges," the report said. For fitment factor calculations, the report has assumed real income growth of 14.3% (worst case) and 54% (best case). The middle case fitment factor is just the average of the 2 fitment factors. Historically, pay commissions have enabled real salary hikes of 14% to 54%. 8th Pay Commission Salary Hike: Best, Worst, & Middle Case Scenarios Sharing middle and worst case scenarios, the report pegs salary hike of central government employees at 34% and 14%, respectively. 'Our estimates suggest hikes around 30-34% could be under consideration in the 8th Pay," the report said. 'Assuming a current basic pay of Rs 50,000 and with Dearness Allowance (DA) projected to reach 60% by the end of 2025 (up from the current ~55% with one more likely increment), salaries are expected to increase by at least 14% under the 8th Pay Commission. This growth at about 14% represents the lowest threshold seen across the last four Pay Commissions (including the current one)," the report said. 8th Pay Commission: When Will It Be Implemented? The 8th Pay Commission was announced in January 2025. However, it has not been constituted yet. The central government will announce the terms or reference (ToR), members and chairman of the 8th CPC soon. The Department of Expenditure (DEA), under the Ministry of Finance, has put forward a proposal to fill 35 positions in the 8th Pay Commission through deputation. According to reports, the implementation of the 8th CPC is likely to be delayed as against the earlier expectation of January 1, 2026. The recommendations of the latest pay panel could be implemented in late 2026 or 2027. tags : 8th Pay Commission view comments Location : New Delhi, India, India First Published: July 10, 2025, 13:07 IST News business » economy 8th Pay Commission: Fitment Factor Might Be Fixed Between 1.83 And 2.46, Says Report | Check Likely Salary Hike Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
India.com
07-07-2025
- Business
- India.com
8th Pay Commission: Central govt employees' salary may rise by..., implementation date is...; What we know so far
8th Pay Commission latest update 8th Pay Commission expectation: In a big positive update for the central government employees across India, media reports have it that the central government employees and pensioners may get major salary overhaul in 2027 with the 8th Pay Commission's implementation, which is set to triple basic pay, allowances, and pensions compared to the current 7th Commission. Here are all the details you need to know about the recent update on the 8th Pay Commission's implementation. 8th Central Pay Commission: What to expect! Readers should note that the 8th Central Pay Commission (CPC), which was approved earlier this year by the Union Cabinet, is expected to be implemented around 2027. The triple basic pay increase is expected by experts in media reports due to a change comes in the fitment factor—used to adjust pay—rises from 2.57 to approximately 2.86, meaning, for example, a Level 1 basic salary could increase from Rs 18,000 to over Rs 51,000. 8th Pay Commission expectation: What does Goldman Sachs say? As per a report release by Goldman Sachs in May this year, the salaries of Central government employees may increase by Rs 14,000 to Rs 19,000 per month after the implementation of the 8th Pay Commission report. The global financial services firm stated that around 50 lakh Central government employees and 65 lakh pensioners are expected to benefit from the pay revision. Currently, central government employees earn a median monthly salary of Rs 1 lakh before tax. 7th Pay Commission vs 8th Pay Commission: What's better? If the government allocates Rs 1.75 lakh crore for the 8th Pay Commission, and half of this amount is used for salary revision while the rest is for pensions, the median salary could rise to Rs 1,14,600 per month. For comparison, the implementation of the 7th Pay Commission in 2016 had cost the government Rs 1.02 lakh crore, the report said. Employee unions have hinted that they may demand a fitment factor of 2.57 or higher, similar to what was recommended under the 7th Pay Commission. (With inputs from agencies)
India.com
04-07-2025
- Business
- India.com
8th Pay Commission news: Bad news for Central govt employees, DoPT gives extension for…, pay panel set-up still incomplete
8th Pay Commission Latest update: The central government employees and pensioners are eagerly waiting for the appointment of the 8th Pay Commission's chairman and finalising the Terms of Reference (ToR). More than 1.2 crore central government employees and pensioners are awaiting revision of their salaries and pensions. Despite the government's approval on January 16, 2025, the Pay Commission has not been formally constituted. The ToR and the appointment of the chairman and other important members is also not yet completed. 8th Pay Commission: 3rd Extension For 8th CPC Posts The Department of Personnel and Training (DoPT) has extended the deadline for the submission of applications for four Under Secretary posts under the 8th Central Pay Commission (CPC) for the third time. Initially set for 21 May 2025, the deadline was first extended to 30 June 2025, and has now been further extended to 31 July 2025. In its latest circular, DoPT has decided to extend the last date for submission of applications till 31.07.2025. This is the third extension that DoPT has given, according to media reports it means that the applications from eligible candidates for these posts in the pay panel might not have not been received yet. Earlier it DoPT had proposed to fill up the 4 posts of Under Secretary (Level 11) in the 8th Central Pay Commission (CPC) on deputation basis under the Central Staffing Scheme under D/o Expenditure. 8th Pay Commission: Pay, Pension Revision The 8th Pay Commission will revise the salaries, pensions, and allowances of central government employees and pensioners. It will also update the Dearness Allowance as per inflation trends. The commission's recommendations are expected to benefit around 50 lakh central government employees, including the defence forces, and around 65 lakh pensioners, including retired defence personnel. 8th Pay Commission: Delay Impact On Employees The tenure of the 7th Pay Commission ends on 31 December 2025 and the constitution of the new Commission is in limbo. This has increased the concerns for the central government employees and pensioners. The National Joint Consultative Machinery (Staff Side)-NCJCM has written a letter to the government asking that the Terms of Reference (ToR) of the 8th Central Pay Commission should be made public and the 8th CPC committee should also be constituted at the earliest. According to the media reports, the ongoing delay in formally issuing the Terms of Reference (ToRs) has created widespread speculation and uncertainty among central government employees and pensioners. The staff further noted that the lack of clear and timely communication will lead to concerns among employees about the credibility of the announcement related to the formation of the 8th Pay Commission.
News18
11-06-2025
- Business
- News18
8th Pay Commission: Grade Pay Vs Pay Bands Vs Pay Matrix, What Are These? How Fitment Factor Changed Under Them
Last Updated: The 8th Pay Commission will revise salaries, pensions, and allowances, directly benefiting over 50 lakh central government employees and over 65 lakh pensioners. As discussions grow louder about the 8th Central Pay Commission (CPC), over one crore central government employees and pensioners face a familiar question: How will my basic pay be reshuffled this time? The answer might lie in three decades of structural experiments – Grade Pay, Pay Bands, and the Pay Matrix – each revolutionising how the central government calculates salaries. Here's what are these, and why the fitment factor is important. The 8th Pay Commission will revise salaries, pensions, and allowances, directly benefiting over 50 lakh central government employees and over 65 lakh pensioners. The Three Eras of Salary Calculation Pre-6th CPC Era: Chaos Before the 6th Pay Commission in 2006, a large number of pay scales existed with no standardisation. Fitment factor was also non-existent. Before the 5th CPC, salary revisions relied on individual pay scale adjustments and merger of DA rather than a uniform multiplier. The fitment factor was introduced under the 5th Pay Commission. The Grade Pay Revolution (6th CPC, 2006) Pre-2006, India had over 4,000 disparate pay scales across roles. An undersecretary earned Rs 10,000, while a section officer made Rs 12,000 – with no logic linking hierarchies. The 6th CPC collapsed scales into 4 Pay Bands (e.g., PB-1: Rs 5,200–20,200) + Grade Pay (GP). GP determined seniority within bands (e.g., Rs 2,400 for clerk, Rs 4,800 for under secretary). A uniform 1.86x multiplier on 'Basic Pay + DA" placed employees in new bands. For example, Old Salary: Rs 50,000 (Rs 45,000 Basic + Rs 5,000 DA) → Revised: Rs 50,000 × 1.86 = Rs 93,000 (placed in PB-3 + GP Rs 6,600). Pay Bands + GP created anomalies. Senior promotions often landed employees below juniors due to overlapping bands. The pay bands were abolished. The 7th Pay Commission created a 24-level Pay Matrix where each cell represented a unique salary (e.g., Level 10: Rs 56,100–Rs 1,77,500). Vertical movement would include promotion, while horizontal movement would comprise annual increments. Under the 7th CPC, the government announced a fitment factor of 2.57x on 'Basic Pay + Grade Pay'. For example, pre-revised salary of Rs 25,400 (Rs 20,000 basic pay and Rs 5,400 grade pay) was revised to Rs 65,278 (Level 6) (Rs 25,400 × 2.57). Fitment Factors Under 5th, 6th, 7th, 8th CPCs 5th CPC (1997): First formal fitment (1.38x) but applied only after merging full DA with basic pay. 6th CPC (2006): Fitment factor was fixed at 1.86x. 7th CPC (2016): 2.57x aimed to offset inflation since 2006 – but employees demanded 3.68x. 8th CPC (Expected 2026): Expectations are of a fitment factor of 2.5x-2.8x, which might increase the employee salaries between Rs 40,000 and Rs 45,000. With the Pay Matrix likely staying, the real battle is over the fitment factor and allowance reforms. Key watchpoints: Will defense/get special fitment? (7th CPC gave them 2.67x). Will HRA, travel allowances be subsumed into basic pay? Can states afford matching revisions? (Kerala's 7th CPC fitment: 2.29x). When Will the 8th Pay Commission Be Formed And Implemented? The 8th Pay Commission was announced by the central government in January this year. However, it is yet to be constituted. Its members, chairman, and terms of reference (ToR) have not been announced yet. According to an ET report citing senior officials, the implementation of the 8th CPC might stretch 'well beyond the expected January 1, 2026, timeline". It said even if the Commission if formed by the end of this year, it will likely require 18-24 months before the recommendations are ready for implementation. The previous 7th Pay Commission was constituted two years before its implementation. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : 8th Pay Commission Location : New Delhi, India, India First Published: June 11, 2025, 14:29 IST News business 8th Pay Commission: Grade Pay Vs Pay Bands Vs Pay Matrix, What Are These? How Fitment Factor Changed Under Them
News18
31-05-2025
- Business
- News18
8th Pay Commission: Delay Likely, But Will All Retirees After January 2026 Get Its Benefits?
Last Updated: The 8th Pay Commission for central government employees and pensioners may be delayed beyond January 1, 2026, but retirees after this date may still benefit from revised pensions. As discussions around the 8th Pay Commission continue among central government employees and pensioners, reports suggest that its implementation is likely to be delayed from the earlier expected date of January 1, 2026. Now, one key question is drawing attention: Will those retiring on or after January 1, 2026, still benefit if the pay commission's recommendations are delayed? 8th Pay Commission: What's The Status? The 8th Central Pay Commission, which will review and revise the salary structure, allowances, and pensions of over 50 lakh central government employees and around 65 lakh pensioners, was announced by the central government in January 2025. Its terms of reference (ToR) and members have not been finalised yet. However, last month, the government issued a circular informing that various vacancies, around 35 posts, will be filled on a deputation basis for the 8th Pay Commission. Pay commissions are typically constituted every 10 years, with the last (7th Pay Commission) being implemented from January 1, 2016. Its term is coming to an end on December 31, 2025. As its chairman, members and ToR have not been finalised yet, widespread expectations point to delay in its implementation to late 2026 or early 2027, against the expected timeline of January 1, 2026. Why Is It Getting Delayed? There has been no formal communication from the Ministry of Finance or the Department of Expenditure on the timeline. However, delays could be attributed to fiscal considerations and alternative pay adjustment mechanisms like the Aykroyd formula and inflation-linked increments, though they have not replaced the need for a full-fledged commission. Yes, if the commission's recommendations are implemented with a retrospective date (as in the past), those retiring after January 1, 2026, will receive revised pension and salary arrears. For example, when the 7th Pay Commission was implemented in 2016, many beneficiaries received arrears for months before the actual rollout date. What Kind of Salary Hike Is Expected? While official figures are yet to emerge, analysts and employee unions speculate that the minimum basic pay may increase from Rs 18,000 to Rs 26,000, representing a hike of around 40-44 per cent. According to several reports, the fitment factor, a key multiplier for revising salaries, could be 1.96 in the 8th pay commission, although this remains unconfirmed. If the fitment factor is 1.92, then Level 1 government employees may see a salary jump of around Rs 15,000 per month, which is about a 40% increase in take-home pay under the 8th Pay Commission. First Published:
