8th Central Pay Commission: Salary Structure & Implementation
A vast number of employees working for the Central government are keenly anticipating the establishment of the 8th Central Pay Commission. This commission is set to tackle several critical issues, including the fundamental salary framework, the fitment factor ratio, minimum wage standards, and an updated pay matrix.
For those serving or retired from central, state, or public sector organizations, this article aims to clarify your questions about the 8th Central Pay Commission. Our platform meticulously compiles information through discussions with leaders from various federations and associations, ensuring that the insights shared here are thorough and trustworthy for your knowledge and reference.
Constitution of 8th Pay Commission: Latest News on 22.7.2024
In Parliament, a dialogue took place concerning the establishment of the 8th Pay Commission for Central Government Employees. Shri Pankaj Chaudhary, the Minister of State in the Ministry of Finance, noted that two requests had been submitted in June 2024 regarding the formation of this commission. Nonetheless, he clarified that there are no ongoing proposals from the government regarding this matter.
Formation of 8th Central Pay Commission Latest Update April 2024
The Ministry of Personnel has forwarded a memo from the Indian Railways Technical Supervisors’ Association to the Department of Expenditure regarding the formation of the 8th Central Pay Commission. This marks the start of the process to evaluate and adjust salary frameworks for government employees, highlighting the government’s commitment to fair remuneration.
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 8th Central Pay Commission is expected to be set up following the Union Cabinet Committee’s endorsement, which is anticipated to happen in 2025. It is likely that the major political parties, including the BJP and Congress, will incorporate a pledge to execute 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 in the 8th Pay Commission plays a vital role in the overall findings of the report. In contrast, the 7th CPC established this ratio at 2.57, which had a major impact on salary frameworks. The determination of this fitment factor is closely linked to the rate of Dearness Allowance, which is an essential element affecting total compensation. Ultimately, the concluding percentage of the Dearness Allowance will dictate the fitment factor ratio for the upcoming 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 reasoning behind the 7th Pay Commission’s choice to use various fitment factors for establishing basic salaries is somewhat ambiguous. Fitment factors like 2.57, 2.62, 2.67, 2.78, and 2.81 were utilized to create the pay matrix table. These factors are linked to the final installment of the Dearness Allowance, with a key focus on the DA percentage following the 7th CPC tenure. Forecasts indicate that the DA rate could reach 62% by December 31, 2025, right before the next 8th Pay Commission takes effect on January 1, 2026. It is standard practice for all pay commissions to merge DA into the basic salary. This process consists of adding the DA to the basic pay, after which the commission will assess the percentage increase for the following 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 |
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