Outlook Business Desk
The 8th Pay Commission is set to review and revise salaries, allowances and pensions for central government employees and pensioners, based on economic factors and a proposed fitment factor increase.
The commission will consult trade unions, interact with government departments to assess pay expectations and study inflation along with employees' financial conditions before drafting recommendations for Cabinet approval.
Salary and pension revisions under pay commissions are based on the fitment factor — a key multiplier applied to existing basic pay. For example, the 6th Pay Commission used a factor of 1.92, while the 7th applied 2.57. This means basic pay and pensions were increased proportionately using these multipliers.
When the 8th Pay Commission's pension revisions are finalized, pensioners could see a substantial rise in their payouts, offering greater financial freedom to cover everyday costs and additional expenses.
Fitment factor is the multiplier used to calculate revised pay or pension. Under the 7th CPC, it was 2.57. For the 8th CPC, reports suggest it may go up to 2.86.
At a 2.57 fitment, the revised pension is estimated to be Rs 32,767. With 2.86, it may increase to Rs 36,465—offering a noticeable boost to monthly earnings.
Those with a basic of Rs 17,700 may receive Rs 45,489 with a 2.57 fitment factor. At 2.86, it could go up to Rs 50,622 per month—helping offset inflation.
A pensioner drawing Rs 28,050 may get Rs 72,088 if 2.57 is used, or Rs 80,223 if 2.86 is approved. This jump could benefit mid-level retired staff the most.
The highest pension —Rs 39,400—would rise to Rs 1,01,258 with a 2.57 fitment and Rs 1,12,684 with 2.86 marking a major increase.