The Central Government has accelerated preparations for the 8th Central Pay Commission (CPC). Although the commission received in-principle approval in January
2025, the official notification is yet to be issued. Once the notification is released, the chairperson and members of the commission will be formally appointed, said report by Hindustan. Government confirms active deliberations Minister of State for Finance Pankaj Chaudhary recently informed the Rajya Sabha that the government is actively working on the matter. He said, “The notification regarding the 8th Central Pay Commission will be issued at the appropriate time. Once constituted, the chairperson and members of the commission will be appointed.” The government has also clarified that it is in active consultation with state governments to ensure consensus before the final announcement. Sources indicate that the official notification could be released very soon. What is the Fitment Factor? The most crucial element in salary and pension revision under the 8th Pay Commission is the Fitment Factor — a numerical multiplier used to calculate revised pay and pension. Simply put: New Pay = Basic Pay × Fitment Factor This time, the government is reportedly considering adopting the Aykroyd Formula, developed by Dr. Wallace Aykroyd, which links minimum wages to the cost of living. The formula takes into account essential expenses such as food, clothing, and housing, ensuring salaries reflect real living conditions. How the Fitment Factor Is Determined Currently, the Dearness Allowance (DA) stands at 58%, and it is expected to reach 60% by the time the 8th Pay Commission is implemented. Based on this, the base fitment factor is likely to be 1.60. However, the government could increase this by 10% to 30%, depending on inflation and economic conditions:
- A 20% hike would raise it to 1.92
- A 30% hike would take it to 2.08
What Changes After the 7th Pay Commission?
Under the current 7th Pay Commission,
- The minimum basic pay for Central Government employees is ₹18,000 per month.
- The minimum pension is ₹9,000 per month.
- Employees also receive 58% DA/DR.
Focus Areas of the 8th CPC
Experts believe the upcoming commission will focus on inflation, cost of living, and income disparity.
If the Aykroyd Formula is applied, it would ensure that minimum wages are set in line with actual household expenses, offering relief to employees facing rising living costs.
Likely Structure of the Commission
After the notification, the government is expected to appoint:
- One Chairperson
- Two full-time members, and
- Several part-time expert advisors
High Hopes Among Employees
Central government employees and pensioners are eagerly awaiting the announcement.
Several employee unions have urged the government to implement the new pay scale from January 1, 2026, ensuring timely benefits to millions of workers and retirees.
