8th CPC: Central government employees and pensioners across India are eagerly waiting for the 8th Pay Commission salary hike. The Union Cabinet has already approved the 8th Pay Commission in January 2025, and it is expected to come into effect from January 1, 2026. This major reform will benefit nearly 48.6 lakh government employees and 67.8 lakh pensioners by revising their basic pay, allowances, and pension benefits.
What is the 8th Pay Commission?
The 8th Pay Commission is a periodic salary revision framework implemented by the Indian government to ensure that central government employees’ salaries match inflation and changing economic conditions. Apart from basic pay, it also covers Dearness Allowance (DA), House Rent Allowance (HRA), pensions, and other perks.
8th Pay Commission Salary Hike Predictions & Fitment Factor
One of the most talked-about aspects of the 8th CPC is the fitment factor, which directly impacts the salary hike. According to various reports, the fitment factor under the 8th Pay Commission is expected to be between 1.83 and 2.86.
The salary increase range according to the fitment factor is expected to be around 13% to 34%, depending on the final factor and DA reset.
For example, if your minimum basic salary is Rs. 18,000 under the 7th Pay Commission, after applying the fitment factor:
Lower range (1.83): Rs. 18,000 × 1.83 = Rs. 32,940
Higher range (2.86): Rs. 18,000 × 2.86 = Rs. 51,480
Currently, DA stands at 55% of the basic pay, but it will be reset to zero when the 8th Pay Commission is implemented.
New Salary Structure Under 8th Pay Commission
With the new 8th Pay Commission, a revised pay matrix and updated pay slabs will be introduced. The allowances will also see a big jump
- HRA and travel allowance will be recalculated based on the revised basic pay.
- Other allowances like qualification pay, special duty allowances, and additional perks may increase.
- Retirees will see an upward revision in pension amounts along with improved welfare schemes.
For lakhs of central government employees and pensioners, this historic salary revision will improve disposable income and enhance their standard of living. It will also positively impact sectors like housing, travel, and consumption due to increased spending power.
How to Calculate Your Revised Salary Under the 8th Pay Commission?
You can easily estimate your salary under the 8th CPC using the fitment factor formula. Here’s a step-by-step guide to help you understand:
Let’s say your current basic pay is Rs. 49,000 and the assumed fitment factor is 2.2.
New Basic Pay: Rs. 49,000 × 2.2 = Rs. 1,07,800
HRA (Assuming X-category city, 27%): 27% of Rs. 1,07,800 = Rs. 29,106
Transport Allowance (TA): Rs. 3,600 (base TA, DA reset to zero initially)
Other Allowances (Special/Qualification Pay, etc.): Rs. 5,000 (assumed)
The new gross salary will total to Rs. 1,07,800 (basic) + Rs. 29,106 (HRA) + Rs. 3,600 (TA) + Rs. 5,000 (others) = Rs. 145,506 per month.
This means your gross salary jumps by almost 38.5% compared to your current pay of Rs. 49,000. However, taxes, NPS, and statutory deductions will determine your in-hand salary further.