8th Pay Commission: Every central government employee is waiting for the formation of the 8th Pay Commission. The central government had announced the formation of the 8th Pay Commission in January this year. It was also said that the recommendations of the Pay Commission will be effective from January 1, 2026. Now let’s talk about salary hikes.
It is believed that there will now be major changes in the basic salary, house rent allowance (HRA), dearness allowance (DA), and pension of employees. All these will come into effect from January 1, 2026. This initiative of the government will directly benefit 47.85 lakh central employees and 68.62 lakh pensioners of the country. Sources say that whenever the 8th Pay Commission comes into effect, its arrears will be available from January 2026. The Finance Ministry has started work on the commission. For this, new appointments have been announced in 35 posts.
It is believed that there will now be major changes in the basic salary, house rent allowance (HRA), dearness allowance (DA), and pension of employees. All these will come into effect from January 1, 2026. In a circular issued by the Finance Ministry on April 17, 2025, it was stated that the appointments to the commission will be on a deputation basis. These officers will hold office from the date of constitution of the commission till its termination. These appointments will be made under the guidelines of the Department of Personnel and Training (DoPT). Names of eligible officers for this purpose have been sought from the concerned departments.
This initiative of the government will directly benefit 47.85 lakh central employees and 68.62 lakh pensioners of the country. With the implementation of the 8th Pay Commission, there is a possibility of a significant increase in their basic salary, pension, and allowances. The fitment factor will play an important role in the 8th Pay Commission. It will be based on this that the amount of increase in basic pay will be decided.
Under the currently applicable 7th Pay Commission, the fitment factor is 2.57. The 8th Pay Commission is said to have recommended increasing it to 2.85. This will significantly increase the basic salary of the employees. For example, if someone’s basic salary is Rs. 50,000, then according to the new fitment factor, it can increase to Rs. 142,500. It is being said that Dearness Allowance (DA) may be merged with the basic pay in the 8th Pay Group. This will not only simplify the pay structure but will also bring changes in other allowances like HRA (House Rent Allowance) and TA (Travel Allowance) based on it.
The government is considering not only increasing the salaries of central government employees but also increasing the facilities for pensioners. The commission may also give suggestions on timely payment of pensions and increasing the amount. Let us understand the difference in salary through an example. Let us assume that the current basic salary of an employee is Rs. 50,000. If the new fitment factor is fixed at 2.85, the new basic salary = 50,000 × 2.85 = 142,500. If house rent allowance is 30% = Rs. 15,000, the estimated total salary = Rs. 157,500.