8th Pay Commission Latest Update: Salary Hike, Pension Parity & Expected Fitment Factor (2025)

The 8th Pay Commission (8th CPC), approved by Prime Minister Narendra Modi in January 2025, is set to revise salaries and pensions for over 36 lakh central government employees and pensioners. With expectations of a 25-30% salary hike, the focus remains on the fitment factor, pension equality, and when the final report will be submitted.

Latest Updates on 8th Pay Commission (April 2025)

• Fitment Factor Expected Between 2.6 to 2.85 – This multiplier will determine the new basic pay, potentially raising salaries by 25-30%.

• Basic Pay May Cross ₹40,000 – Experts suggest a significant increase from the current ₹18,000 (7th CPC).

• Pension Parity Confirmed – Finance Minister Nirmala Sitharaman assured no discrimination between pre- and post-2016 retirees.

• Report Submission Timeline – The government has not yet finalized the deadline for the 8th CPC report.

Will Pensioners Get Equal Benefits?

In a recent clarification, FM Sitharaman confirmed:

"All Central Government pensioners who retired before 1.1.2016 are receiving pensions at par with those who retired after this date."

The 7th Pay Commission had already introduced pension parity, and the 8th CPC is expected to maintain this. Additionally, defense pensioners remain unaffected, as they follow separate rules.

How Much Salary Hike Can Employees Expect?

The fitment factor is the key determinant. Here’s what experts predict:

• 7th CPC Fitment Factor: 2.57 (resulting in a 23.55% average hike).

• 8th CPC Expected Fitment Factor: 2.6 to 2.85 (likely increasing salaries by 25-30%).

Neeti Sharma, CEO of TeamLease Digital, told ET NOW Digital:

"The basic minimum pay could exceed ₹40,000, along with revised allowances and performance-linked benefits."

When Will the 8th Pay Commission Report Be Submitted?

While the government has approved the 8th CPC, the final report submission date remains undecided. FM Sitharaman stated:

"The timeline for submission will be decided in due course."

Key Takeaways for Employees & Pensioners

✅ Salary Hike: Expected 25-30% increase based on fitment factor (2.6-2.85).
✅ Pension Parity: No discrimination between pre- and post-2016 retirees.
✅ Basic Pay: Likely to cross ₹40,000 (up from ₹18,000 in 7th CPC).
✅ Next Steps: Await official confirmation on report submission & implementation.

Final Thoughts

The 8th Pay Commission is poised to bring major financial relief to central government employees and pensioners. With a potential 30% salary hike and confirmed pension parity, the changes could significantly boost household incomes.

Stay tuned for official updates on the 8th CPC report submission and final recommendations!