If the fitment factor of 2.57 is implemented in the 8th Pay Commission, it will be a huge benefit for employees with a basic pay of Rs 44,900 (Level 7). They will get Rs 5.14 lakh as arrears.

8th Pay Commission

The Eighth Pay Commission held two major meetings in October. The first meeting was held in Bengaluru on October 8th. The second meeting was held in Mumbai on October 23rd. The Commission, headed by Justice Ranjana Prakash Desai, completed its 12-month term on November 3rd, 2026. Under its Terms of Reference (ToR), the Commission has 18 months to submit its final report, which is now rapidly approaching.  

The 7th Pay Commission's 10-year term ended on December 31, 2025. Therefore, January 1, 2026, is considered the reference date (effective date) for the 8th Pay Commission. Since the Commission has been given 18 months to submit its final report, it is expected to submit its report by May 2027. Consequently, the 16- to 20-month delay between the Commission's formation and the issuance of the final government notification will be paid to employees as arrears, either in lump sum or in installments.

Arrears of lakhs of rupees will be received

If the 8th Pay Commission's fitment factor of 2.57 is applied and considered effective from January 1, 2026, employees with a basic pay of ₹44,900 (Level 7) could receive 12-month arrears of approximately ₹5.14 lakh (5,14,638). However, no official announcement has been made regarding the fitment factor. This is merely an approximate calculation.

How to make lakhs of rupees in 12 months

Suppose a central government employee is in Pay Matrix Level 6, whose current basic pay is ₹44,900. The revised basic pay, based on a fitment factor of 2.57, would be as follows:

Revised Basic Pay = Fitment Factor × Old Basic Pay = 2.57 × 44,900 = 1,15,393 (approximately Rs 1,15,400 when rounded off)

Calculating arrears also requires taking into account dearness allowance (DA), which was 60% from January to June 2026 and increased to 63% from July 2027. Consequently, the employee's current basic salary and DA combined amount to approximately ₹71,840 per month for the first six months and ₹73,187 per month for the next six months.

The monthly difference between the revised basic pay and the current pay including DA is approximately ₹43,560 for January to June and ₹42,213 for July to December. This totals to approximately ₹5.14 to ₹5.15 lakh over 12 months (6 × 43,560 + 6 × 42,213 = ₹5,14,638).