About 1 crore central government employees and pensioners in the country are eagerly waiting for the announcement of the 8th Pay Commission. As soon as the new commission is implemented, there will be a big change in their salary, pension, and allowances. However, looking at the current pace and process, it seems less likely that the recommendations of the new Pay Commission will be implemented from 2026.

Actually, the term of the 7th Pay Commission will end in the next 6 months, that is, on 31 December 2025. As per the usual process, the 8th Pay Commission should be implemented from 1 January 2026. But this is unlikely, because it usually takes around 12 to 18 months to implement the recommendations of a new Pay Commission.

So far, even the Terms of Reference (ToR) for the new commission have not been finalized. Because of this delay, the implementation of the 8th Pay Commission is now expected to happen by 2027. Let us now understand what changes can take place in salary, allowances, and the fitment factor after the 8th Pay Commission is introduced.

How Much Salary Can Increase in 8th Pay Commission?

The fitment factor is a very important part in deciding the basic salary of government employees. It helps to increase the salary when a new pay commission is applied. Right now, the fitment factor is 2.57. Because of this, in the 7th Pay Commission, the basic salary increased from ₹7,000 to ₹18,000.

As per reports, the fitment factor in the 8th Pay Commission may be:

  • 2.28
  • 1.92
  • 2.86
  • This can increase salary by 30% to 50%.
  • If the factor is 2.86, the basic salary may go up to ₹51,480.
  • If it is 1.92, then the salary may increase to ₹34,560 (from ₹18,000).

Will DA (Dearness Allowance) Change?

At present, DA is 55%, and it is expected to go up to 61% by January 2026. Once the 8th Pay Commission is active, this DA may be added to the basic salary. This happened earlier in 2016, when 125% DA was added to the basic, and new DA calculation started. There is also talk that the formula for DA calculation might change. Right now, it is based on the AICPI-IW index, and the base year is 2016. For example: If someone’s basic salary is ₹18,000 and 61% DA is added, the new basic could become ₹28,980.

Will HRA (House Rent Allowance) Also Change?

Yes, HRA may also change in the 8th Pay Commission.

Earlier HRA rates were:

In 6th Pay Commission:

30% for X city, 20% for Y city, 10% for Z city

In 7th Pay Commission:

  • 24% (X), 16% (Y), 8% (Z)
  • When DA crossed 50%, HRA again became 30%, 20%, 10%.

So, it is expected that in the 8th Pay Commission, HRA will again be revised based on the new basic salary and DA.