8th Central Pay Commission: Implementation & Salary Guide
Countless employees of the Central government are keenly anticipating the formation of the 8th Central Pay Commission. This commission will tackle important topics, including the foundational salary framework, fitment factor ratios, minimum wage levels, and an updated pay matrix.
If you are a central or state employee or a pensioner within public sector organizations, you’ll discover clear answers to your questions about the 8th Central Pay Commission through the extensive insights offered in this article. Our platform meticulously compiles information gathered from discussions with federation and association leaders, guaranteeing that the material available here is both thorough and trustworthy for your review and comprehension.
Constitution of 8th Pay Commission: Latest News on 22.7.2024
In Parliament, there was a conversation about establishing the 8th Pay Commission for Central Government Employees. Shri Pankaj Chaudhary, the Minister of State in the Ministry of Finance, noted that two submissions were made in June 2024 concerning the formation of this commission. Nevertheless, he clarified that the government is not currently evaluating any proposals related to it.
Formation of 8th Central Pay Commission Latest Update April 2024
The Ministry of Personnel, Public Grievances & Pensions has forwarded a memo from the Indian Railways Technical Supervisors’ Association to the Department of Expenditure, initiating the process for the establishment of the 8th Central Pay Commission. This commission is essential for reviewing and adjusting salary frameworks for government employees, ensuring their remuneration remains equitable and competitive.
8th Central Pay Commission Implementation Date – Explained
| Topic | 8th Central Pay Commission |
| Beneficiaries | Central Government Employees |
| Panel Committee | Not Yet Constituted |
| Panel Members | Not Yet Decided |
| 8th CPC Implementation Date | 1.1.2026 (Thursday) |
| 8th CPC Duration | 10 Years |
| Home Page | Click Here |
When Will the 8th Central Pay Commission Be Constituted?
The formation of the 8th Central Pay Commission is expected to take place following the Union Cabinet Committee’s endorsement, which is likely to happen in 2025. There is an anticipation that the major political parties, including the BJP and Congress, will incorporate a pledge to enact the 8th CPC for Central government employees and pensioners in their manifestos for the upcoming 2024 general elections.
Understanding Fitment Factor Ratio in 8th Pay Commission
The Fitment Factor ratio within the 8th Pay Commission holds significant importance in the report. In the earlier 7th CPC, this ratio was set at 2.57, playing a vital role in shaping salary frameworks. The determination of this fitment factor ratio is closely linked to the percentage of Dearness Allowance, which is a major factor affecting overall compensation levels. Ultimately, the last adjustment of the Dearness Allowance percentage will dictate the fitment factor ratio for the 8th Pay Commission.
4th to 8th CPC Fitment Factor Table
| CPC | Pay Hike in % | Fitment Factor | Minimum Basic Salary |
| 4th CPC | 27.6% | – | 750 |
| 5th CPC | 31% | – | 2,550 |
| 6th CPC | 54% | 1.86 | 7000 |
| 7th CPC | 14.29% | 2.57 | 18,000 |
Calculation of 8th Pay Commission Fitment Factor
The reason for the 7th Pay Commission’s decision to use several fitment factors when setting basic salaries is somewhat ambiguous. Different factors, including 2.57, 2.62, 2.67, 2.78, and 2.81, were utilized to formulate the pay matrix table. The fitment factor is linked to the last installment of Dearness Allowance (DA), with a crucial element being the DA percentage after the completion of the 7th CPC term.
Forecasts indicate that by December 31, 2025, the DA rate could reach 62%, right before the new 8th Pay Commission kicks in on January 1, 2026. Merging DA with the basic salary is a standard procedure followed by all pay commissions. This process entails incorporating DA into the basic salary, after which the commission will assess the percentage increase for the next decade, from 2026 to 2035.
| Basic Salary | 100% |
| DA | 62% |
| 8th CPC Hike (Expected) | 27% |
| Fitment Factor | 189% (1.89) |
Expected Salary Hike in 8th Central Pay Commission
| 7th CPC Basic Pay | 8th CPC Expected Basic Salary |
| 18000 | 34000 |
| 19900 | 37600 |
| 21700 | 41000 |
| 25500 | 48200 |
| 29200 | 55200 |
| 35400 | 66900 |
| 44900 | 84900 |
| 47600 | 90000 |
| 53100 | 100400 |
| 56100 | 106100 |
| 67700 | 128000 |
| 78800 | 149000 |
Table of Contents