8th Pay Commission – If you are a central government employee, then this article is for you. Ever since the Central Government approved the 8th Finance Commission, it is being discussed a lot. How much will the salary and pension of the employees increase in the 7th Pay Commission? How much fitment factor will be applicable? Estimates are being made on this. But do you know that the government may get a big shock if the salary is revised in the new Finance Commission? The Central Government may have to bear a huge burden of an additional Rs 1.8 lakh crore.
According to Ambit Capital, the implementation of the new salary structure can increase the total salary of more than 1 crore employees and retirees by 30-34%. If this change is implemented, it can start from 2026 or financial year 2027. This can put an additional burden of Rs 1.8 lakh crore in government expenditure. The biggest basis for salary hike in the 8th Pay Commission will be the fitment factor. This time the fitment factor can be between 1.83 to 2.46.
Meaning, the minimum salary which is Rs 18,000 right now can go up to Rs 32,940 at 1.83 fitment factor and Rs 44,280 at 2.46. For example, if someone’s basic salary is Rs 50,000, then it can range from Rs 91,500 at lower fitment to Rs 1.23 lakh at higher fitment. Also, Dearness Allowance (DA) will be adjusted according to inflation and payments for pensioners will also be updated. These changes can be implemented from the financial year 2026 or 2027.
Experts believe that the 8th Pay Commission can prove to be a game-changer for the economy. The increased salary of more than 1 crore employees and pensioners will boost consumption. People will spend more on healthcare, housing and leisure. Retail, real estate and service sectors will benefit greatly from this. But this will not be easy for the government. The additional burden of Rs 1.8 lakh crore can increase the fiscal deficit. The government will have to create a balance so that the economy grows and the financial stress does not increase.
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