Archive · 11 Aug 2025
8th Pay Commission: Brokerages Predict Sharp Central Govt Pay Rise
Experts are trying to guess how much more money central government employees will get, but the final decision hasn't been made yet.
Some think salaries could go up by 13% to as much as 54%.
These estimates are based on something called a 'fitment factor', which is used to calculate raises.
When a new pay commission starts, a part of the salary called 'dearness allowance' resets.
This means the actual raise might be smaller than what the fitment factor suggests.
The exact amount will be decided after the 8th Pay Commission is created and talks with stakeholders are completed.
Brokerage forecasts suggest central government salary hikes from 13% to 54%.
Ambit Capital projects a fitment factor range between 1.83 and 2.46.
Kotak Institutional Equities suggests a 1.8 fitment factor, translating to a 13% rise.
Actual pay growth is smaller as dearness allowance (DA) resets when a new pay commission takes effect.
The exact fitment factor will emerge after the 8th Pay Commission is formed.
- Who
- Central government employees.
- What
- Potential salary increases for central government employees are being forecast.
- When
- The exact salary increase will be determined after the 8th Pay Commission is formed.
- Where
- N/A
- Why
- To determine the salary increases for central government employees.
- Brokerage Predictions
- Salary hikes ranging from 13% to 54%
- Ambit Capital Fitment Factor
- 1.83 to 2.46
- Kotak Institutional Equities Fitment Factor
- 1.8
- DA Reset
- Occurs when a new pay commission is implemented.
