8th Pay Commission: The ‘Fitment’ anticipation

Finally, the long wait for a confirmed pay revision may soon be over as discussions around the Fitment Factor Hike 2025 gain momentum across government departments and policy circles. The Union Cabinet on October 28 approved the Terms of Reference (ToR) for the 8th Central Pay Commission (8th CPC), which will review salaries, allowances and pension benefits for central government employees and pensioners. The 3-member commission, comprising Chairperson Justice Rajana Prakash Deasi, IIM Bangalore Prof. Pulak Ghosh (Part-time Member), who is an accomplished data scientist and Petroleum Secretary Sh Pankaj Jain (top bureaucrat and qualified cost accountant) as its Member-Secretary, has 18 months (typical term) to submit recommendations. The recommendations are expected to take effect from 1st January, 2026.

Over 50 lakh central government employees and nearly 65 lakh pensioners, who shall get benefitted with the enhanced perks, are intensely tracking the updates. The proposed hike under the upcoming 8th Pay Commission is being built around one key tool — the FITMENT FACTOR — which directly multiplies the basic pay to bring salaries in line with current economic conditions.

In India, the fitment factor is an essential concept used........

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