The 8th Pay Commission, which is officially set up by the Indian government, is anticipated to make changes to salaries, pensions, and allowances of the central government workers and retired employees. Among matters discussed the most is the fitment factor that defines the basic pay rise. If the fitment factor is decided to be 2.26, then the new basic pay will be 2.26 times of the basic pay currently.
This plan is still under consideration, and it might get the green light in Union Budget 2026 with its execution from January 1, 2026.
Salary & Pension Calculation with Fitment Factor 2.26
| Category | Current Basic Pay | Revised Pay (2.26 Factor) | Increase Amount |
|---|---|---|---|
| Level 1 Employee | ₹18,000 | ₹40,680 | ₹22,680 |
| Mid-Level Employee | ₹35,000 | ₹79,100 | ₹44,100 |
| Senior-Level Employee | ₹67,000 | ₹151,420 | ₹84,420 |
| Pensioner (Basic ₹9,000) | ₹9,000 | ₹20,340 | ₹11,340 |
Key Benefits for Retired Employees
- Higher Monthly Pension: As per to revised basic pay
- Dearness Relief (DR): Will be increased according to the rise in basic pay
- Gratuity & Commutation: Based on and calculated on the new higher salary
- Better Financial Security: Helps overcome inflation and healthcare expenses
Who Will Benefit?
- All central government employees drawing salaries as per 7th Pay Commission
- Retired personnel and family pensioners
- People working in defence, railways, education, and other central government sectors are also eligible
Final Thoughts
The fitment factor of 2.26 suggested in the 8th Pay Commission can be a major source of financial support to government employees and retirees alike. A possible salary increase of more than 25% and also doubling of pensions for many will make this change a revolution on the way to better financial security and respectful retirement. Be alert for the final suggestions in the coming budget.
