Over one crore central government employees and pensioners may soon have reason to cheer, as the Union government has confirmed it has received suggestions from stakeholders regarding the 8th Central Pay Commission (CPC).
Minister of State for Finance, Pankaj Chaudhary, shared the update in a written reply in the Rajya Sabha, stating that official notifications would follow “in due course”, as reported by The Financial Express.
The development comes after months of delay following the initial announcement in January 2025. The 8th CPC, once formally constituted, will outline revised pay structures and pensions for millions of government employees and retirees.
Stakeholder Consultations Underway
According to the Ministry of Finance, the Centre is currently in talks with several departments and ministries, including the Ministry of Home Affairs, the Ministry of Defence, the Department of Personnel and Training, and various state governments. These consultations are aimed at finalising the Terms of Reference (ToR) for the commission.
Chaudhary mentioned that the chairperson and other members of the 8th CPC will be appointed after the commission is officially notified. He also assured that the commission will be expected to deliver its recommendations within a clearly defined timeline, once the ToR is in place.
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Delay Raises Concerns Among Employees
Typically, a Central Pay Commission is constituted every ten years to adjust basic salaries and pensions in line with inflation and other rising costs. The 7th Pay Commission came into effect in 2016, and as per the 10-year cycle, the next round of revisions was expected around 2024–25.
However, over six months have passed since the announcement, and with no formal structure or roadmap in place, many government staff and retirees have expressed concern over the lack of visible progress, especially as inflationary pressures mount.
What’s the Fitment Factor and Why It Matters
The upcoming pay revision is likely to be guided by a key metric known as the fitment factor, which is used to calculate the revised basic salary. In the 7th CPC, this figure was 2.57. Experts now predict that the 8th CPC could suggest a new fitment factor ranging from 1.92 to 2.86.
For instance, an employee earning a basic salary of Rs 30,000 would see it increase to Rs 77,100 with a 2.57 fitment factor. The higher the fitment factor, the greater the salary hike.
Indicative Salary Estimates Across Grades
Based on projections reported by India.com, here are sample salary expectations for various grade pays:
Grade Pay 1900:
- At 1.92: Net Salary Rs 65,512
- At 2.57: Net Salary Rs 86,556
Grade Pay 2400:
- At 1.92: Net Salary Rs 86,743
- At 2.57: Net Salary Rs 1,14,975
Grade Pay 4600:
- At 1.92: Net Salary Rs 1,31,213
- At 2.57: Net Salary Rs 1,74,636
Grade Pay 7600:
- At 1.92: Net Salary Rs 1,82,092
- At 2.57: Net Salary Rs 2,41,519
Grade Pay 8900:
- At 1.92: Net Salary Rs 2,17,988
- At 2.57: Net Salary Rs 2,89,569
These estimates also include allowances such as House Rent Allowance (24 per cent of basic pay in X-class cities), Transport Allowance, National Pension System contributions (10 per cent of basic), and CGHS deductions.
What Lies Ahead
While these figures offer a preview, they remain speculative until the 8th CPC is officially constituted and submits its report. Only then will the final salary structure and allowances be confirmed.
Until then, central government employees and pensioners will need to wait for the formal notification to be issued and for the commission to begin its work in earnest.
