8th Pay Commission : The formation of the 8th Central Pay Commission has sparked excitement among central government employees and pensioners. It is believed that the new system will be implemented from January 1, 2026, resulting in significant revisions to salaries, pensions, and allowances. Expectations based on the fitment factor will lead to changes in employees’
The 8th Central Pay Commission is generating growing curiosity among central government employees and pensioners. Long-standing discussions regarding potential changes to salaries, pensions, and allowances appear to be coming to an end with the commission’s formation.
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The government’s appointment of members has indicated significant revisions to the pay structure in the coming years. While final decisions regarding the rate of increase and the rules are still pending, it is believed that the new system could be implemented as of January 1, 2026.
Impact on income and allowances
The central government constitutes a Pay Commission approximately every 10 years to balance the incomes of employees and pensioners with current economic conditions and rising inflation. Each new Pay Commission implements a direct impact on employees’ basic salaries. Additionally, revisions are made to house rent allowance, travel allowance, and other benefits. Dearness Allowance (DA) is also adjusted within the new pay structure to improve employees’ actual income. Based on previous experience, the Sixth Pay Commission set the fitment factor at 1.92, while the Seventh Pay Commission increased it to 2.57, resulting in significant increases in employees’ salaries.
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Salary structure divided into 18 levels
The pay system for central government employees is divided into 18 levels. The increase under the 8th Pay Commission will not be the same for all employees. It will depend entirely on the employee’s level and current basic salary. Level 1 includes entry-level and Group D employees. Levels 2 to 9 include Group C employees, while Levels 10 to 12 include Group B officers. Levels 13 to 18 include senior Group A officers, including those holding top positions like the Cabinet Secretary. Since the salary at each level is different, the impact of the pay hike will also be different.
Expectations pinned on the fitment factor
The most important basis for salary increases under the 8th Pay Commission will be the fitment factor. This is the calculation used to multiply the existing basic salary to determine the new basic salary. Many factors, such as inflation, cost of living, and the country’s economic situation, are taken into account when determining the fitment factor. This factor, in the 7th Pay Commission, led to an increase in the minimum basic salary from Rs 7,000 to Rs 18,000 per month. Now, employees and pensioners are waiting to see how this factor will be determined in the 8th Pay Commission and how much it will affect their income.