The Indian government has officially announced the approval of 8th Pay Commission. In 8th Pay Commission salaries & pensions of central government employees are reviewed & revised.
8th Pay Commission will be effective from 1 January, 2026. Currently, government employees are receiving their salaries and pensions according to 7th Pay Commission which was applied at 1 January, 2016.
In 7th Pay Commission, 2016 increase in minimum pay was from 7000 per month to 18000 per month with fitment factor od 2.57. Now in 8th Pay Commission increase in minimum pay is expected to 40000 – 50000 with fitment factor of 2.3 – 2.8 times of basic pay.
How Salary Hike is Calculated
A pay commission is applied usually after 10 years. Salary hike is applied on minimum basic pay of employee. Salary hike is basically calculated by multiplying Fitment Factor in current minimum basic pay.
Fitment Factor is calculated on the basis of inflation in last 10 years. In 7th Pay Commission Finment Factor was 2.57 which was multiplied in 7000 to hiked it 18000.
In 8th Pay Commission It is expected to remain between 2.3 – 2.8 with minimum pay 40000 – 50000.
Important Timeline for 8th Pay Commission
Prime Minister Narendra Modi approves 8th Pay Commission, which is expected to implement from 1 January, 2026. Government start costituting pay commission approximately 18 month prior to implementation date.
The last pay commission was was implemented on 1st January, 2016.
Benifits of 8th Pay Commision
Basic Pay: Current basic pay * Fitment factor (Expected 40000 – 50000 with 2.3 – 2.8 fitment factor)
Allowances: Dearness Allowance (DA), Travel Allowance (TA) & House Rent Allowance (HRA) with recalculation on new basic pay.
Sources:
Economic times (https://economictimes.indiatimes.com/)
Jagran Josh (https://www.jagranjosh.com/)