8th Pay Commission, The Center has approved the formation of the 8th Pay Commission. As soon as the 8th Pay Commission is implemented, there will be a big change in the salary and pension of more than 1 crore central employees and pensioners of the country.
The revised salary structure is expected to be implemented from January 1, 2026. However, the delay in the formation of the commission has raised concerns among the central government employees. A major focus of the Commission will be ‘Fitment Factor’. While the 7th Pay Commission set this factor to 2.57, it is expected to be increased to 2.86 under the 8th Pay Commission.
How much salary will increase
If the ‘Fitment Factor’ increases from 2.57 to 2.86, then the adjustment can potentially increase the minimum original salary from Rs 18,000 to about Rs 51,480. However, the final decision will depend on the newly appointed members of the Commission.
Effect on allowances and contributions
In addition to Aadhaar pay adjustment, allowances such as house rent allowance (HRA) and travel allowance (TA) can also be seen updates based on posting and travel requirements. As a result, the total income of two employees of the same salary grade may vary due to variation in their rights.
Apart from this, contribution to the National Pension System (NPS) and the Central Government Health Scheme (CGHS) will also be affected. Currently, government employees contribute to 10% NPS of their basic salary and dearness allowance (DA), in which the government contributes 14%. After salary amendment, this contribution will increase accordingly. Membership rates for CGHS are linked to pay slabs, thus, CGHS fee will also increase as a result of an increase in basic salary.
Estimated pay hike in salary grade
Initial estimate suggests a tremendous salary hike in different salary grades. For example:
Grade 2000 (Level 3): The basic salary can increase to Rs 57,456, with gross monthly salary to reach Rs 74,845 and pure tech-hom salary can reach around Rs 68,849.
Grade 4200 (Level 6): The expected basic salary of Rs 93,708 can result in a gross salary of Rs 1,19,798, causing a total monthly salary of about Rs 1,09,977.
Grade 5400 (Level 9): The basic salary can increase to Rs 1,40,220, with gross salary of Rs 1,81,073 and the total tech-home salary can be around Rs 1,66,401.
Grade 6600 (Level 11): The revised basic salary can reach Rs 1,84,452, with gross monthly income expected to be Rs 2,35,920, due to which there will be a take-house salary of about Rs 2,16,825.
Explain that the above data are based on initial estimates and the actual amount may vary after the final recommendations of the 8th Pay Commission and subsequent government decisions.