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8th Pay Commission Formally Launches With ToR, Fitment Factor in Focus

Fiscal limits plus a DA reset mean headline increases translate into modest take-home gains.

Overview

  • Justice (Retd.) Ranjana Desai will chair the three‑member panel, which has 18 months to submit its report, targeting around April 2027.
  • The Terms of Reference require the commission to weigh macroeconomic capacity, funding for welfare and development, unfunded pension liabilities, state finances, and pay comparisons with CPSUs and the private sector.
  • Brokerage estimates place the fitment factor broadly between 1.8 and 2.46, implying Level‑1 basic pay could shift from Rs 18,000 to roughly Rs 32,400–44,280, though in‑hand gains will be tempered by a DA reset from the current 58%.
  • Based on past practice and post‑report review, implementation is widely expected in late 2027 or into 2028, with revisions applied retrospectively from January 1, 2026.
  • Unions and pensioner groups, including the NC‑JCM and ex‑servicemen raising OROP anomalies, are preparing submissions as recommendations could affect about 1.1–1.2 crore employees and pensioners.