8th Pay Commission: What 50 Lakh Employees Can Expect From Salary Hike
As per reports, salaries could rise by up to Rs 19,000 per month, according to projections based on a potential fitment factor of 2.86.
The Union Cabinet on Tuesday approved the formation of the 8th Pay Commission, ending a months-long wait for over one crore central government employees and pensioners. Their salaries and pensions are likely to be revised.
The move will benefit approximately 50 lakh serving central government employees and 69 lakh pensioners nationwide, according to official estimates.
Usually, the recommendations of the pay commissions are implemented after a gap of every 10 years. "Going by this trend, the effect of the 8th central pay commission recommendations would normally be expected from Jan. 1, 2026," the official release noted.
This suggests that even though the 8th Pay Commission will require 18 months to submit its report — and the same is expected to receive the Centre's nod in three to nine months — the salary and pension hike will come into effect retrospectively. In such a scenario, the employees and pensioners will be paid arrears from Jan. 1, 2026.
The rollout of the last pay panel, which was the 7th Pay Commission, had added a fiscal burden of Rs 1.02 lakh crore in FY17. The impact on the exchequer is expected to be sharper when the 8th Pay Commission is implemented.
The commission will be headed by former Supreme Court judge Ranjana Prakash Desai, with one part-time member and one member-secretary.
ALSO READ
8th Pay Commission: 'Normally Expected From January 2026' — Govt Hints At Massive Arrears Payout
Expected Salary Hikes
The 8th Pay Commission has not yet released official salary slabs. As per reports, salaries could rise by up to Rs 19,000 per month, according to projections based on a potential fitment factor of 2.86.
The fitment factor is a multiplier used to revise the current basic pay, determining the new basic salary under the 8th Pay Commission. For example, a fitment factor of 2.86 implies that the revised basic pay will be 2.86 times the existing basic pay. This increase in basic pay consequently affects the House Rent Allowance (HRA), as HRA is calculated as a percentage of the updated basic salary.
For a mid-level government employee currently earning Rs 1 lakh per month, salary increases could vary depending on the budgetary allocation.
With a budgetary allocation of Rs 1.75 lakh crore, the salary may rise to Rs 1.14 lakh per month, a rise of 14%.
With a Rs 2 lakh crore allocation, the salary may rise to Rs 1.16 lakh, a 16% rise.
An allocation of Rs 2.25 lakh crore will translate to an 18% rise in salary, to Rs 1.18 lakh per month.
The 7th Pay Commission implemented in 2016 had used a 2.57 fitment factor, resulting in a 157% hike and raising the minimum basic pay from Rs 7,000 to Rs 18,000.
If the same factor is applied again, the minimum salary could rise from Rs 18,000 to Rs 46,260 per month, while the minimum pension could increase from Rs 9,000 to Rs 23,130.
