8th Pay Commission Salary- Another major news is here for central government employees. Crores of government employees and retired employees are eagerly waiting for the implementation of the 8th Pay Commission. Meanwhile, a news has increased their happiness further. A report in The Economic Times says that with the implementation of this pay commission, the salary of employees can increase by 30 to 34 percent.
According to so many report, earlier it was expected that the next pay commission would start its term from January 1, 2026, but now it seems impossible. Because till now not much work has been done regarding finalizing the ToR and appointment of key members.
According to a recent report by brokerage firm Ambit Capital, central government employees and pensioners can expect a hike of up to 34% in their salary under the 8th Pay Commission. The report also states that after the implementation of the commission’s recommendations, it will not only lead to growth in the income of government employees but will also give a huge boost to consumer spending in the country.
What will be the fitment factor under the 8th Pay Commission?
Ambit Capital report says that the fitment factor in the 8th Pay Commission can be between 1.83 to 2.46 i.e. the new salary will be decided by increasing the existing basic salary of the employees by this multiplier. For example, in the 7th Pay Commission, this factor was set at 2.57, due to which the minimum basic salary increased from Rs 7,000 to Rs 18,000. However, after resetting the dearness allowance (DA), the actual growth was only 14.3%.
What will pensioners get?
According to Ambit’s report, pensioners will also get a hike in basic pay and dearness allowance (DA). However, they are not eligible for HRA or other allowances, so they will get slightly less benefits on a percentage basis.
The report said that under the Unified Pension Scheme (UPS), 50% of the last salary (as base salary) is now assured from FY 2026. This new pension scheme UPS has come into effect from April 2025 and has become an alternative to the National Pension Scheme (NPS).Ambit Capital estimates that this 30-34% growth in salary and pension will put an additional burden of Rs 1.3 to 1.8 lakh crore on the government. Its direct impact can be seen on GDP up to 30-50 basis points.