Priyanka Tiwari
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Suspense crime, Digital Desk : As of the middle of June 2025, the 8th Pay Commission, which is expected to affect millions of central government employees and pensioners, has not yet been announced. While there is no official circular explaining the delay, internal sources indicate that the discussions regarding the terms of reference have not yet concluded.
As highlighted in the Economic Times, even if the commission is officially set up by the end of 2025, based on historical patterns, it is likely that the recommendations will take an additional 2 years to be finalized and put into practice. Salary increments are, therefore, unlikely to be effective before 2027.
Fiscal Constraints Delaying Decision
The delay appears to stem, at least in part, from the Centre’s fiscal snapshot. With notable welfare spending obligations and promises made during elections, the next pay revision is weighing heavily on the government’s financial budget. The likely implementation of the 8th Pay Commission provisions could significantly increase the strain on the national exchequer, thus making the balancing of budget priorities critical.
Fitment Factor: The Core of Salary Hike Calculations
The fitment factor, one of the major metrics that will be used to calculate revised salaries, is pivotal to the commission’s findings. As a point of reference, the 7th Pay Commission set the fitment factor to 2.57.
Reports hint that the 8th Pay Commission might look at a range between 2.5 to 2.87, although the more likely and fiscally responsible range is estimated between 2.6 and 2.7.
With these rough calculations, central government employees are expected to receive a salary increase of approximately ₹40,000 to ₹45,000, based on their pay grade and structure. Outcomes of the commission are also expected to have a positive impact on almost 70 lakh pensioners in addition to 30 lakh government employees.
Other Potential Reforms
There is increased speculation regarding the merger of the basic pay and dearness allowance (DA) to streamline the pay structure. However, no formal confirmation or outline has been issued by the government as of now.
For the time being, employees and pensioners alike are still waiting for a formal announcement related to the formation of the 8th Central Pay Commission and its expected timelines.
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