8th Pay Commission: There is very important news for Central Government Employees and Pensioners. Earlier this year, the government approved the 8th Pay Commission to change the salary and pension structure of central employees and pensioners. It is expected that the revised salary will come into effect from January 1, 2026.
However, so far the central government has not announced its terms or the names of the commission members. But more than 1 crore employees and pensioners are waiting for clarity on salary changes, which is increasing their expectations.
The fitment factor will be a big decision
The new salary structure will largely depend on the fitment factor. In the 7th Pay Commission, this factor was fixed at 2.57. According to media reports, initial estimates for the 8th Pay Commission suggest that it could be between 2.5 to 2.86. Employee organizations have even insisted on a higher multiplier of 3.68, which can significantly increase the income of employees. This fitment factor plays an important role in determining the basic pay and other allowances.
Major changes are expected in allowances and pensions as well.
With every pay revision, usually Dearness Allowance (DA) is merged into the basic pay. Dearness Allowance has already crossed 50%, which is likely to reset when the new structure comes. This would mean that 50% of DA will be added to the basic pay and the calculation of DA will start again from zero.
Apart from this, House Rent Allowance (HRA), Transport Allowance, and Related Benefits can also be revised. Pensioners will also benefit from these changes, which will increase their monthly pension and help them deal with rising inflation. This change will make their life more comfortable.
More than 1 crore people affected
Around 50 lakh central government employees and 65 lakh pensioners will be affected by the 8th Pay Commission. Some state governments may follow its recommendations later, although they are not bound to do so. At present, employees are waiting for the commission to be formally constituted so that the process can begin. If we look at past timelines, it may take 18 to 20 months for the panel to submit its report. This means that the report may come by the end of 2025 or the beginning of 2026, only after which the entire situation will be clear.