8th Pay Commission: The central government approved the 8th Pay Commission earlier this year! This is a historic decision, which will lead to a major increase in the salary and pension of more than 1 crore central employees and pensioners according to inflation and fairness. These changes are likely to be implemented from January 1, 2026.
With the approval of the 8th Pay Commission, the ‘Fitment Factor‘ is the most discussed. This is the same figure according to which the new salary is decided. In the 7th Pay Commission, this factor was 2.57. Now in the 8th Pay Commission, it is expected to increase to 2.86. If this happens, the minimum basic salary may increase from ₹18,000 to ₹51,480, and the minimum pension may increase from ₹9,000 to ₹25,740. However, the final decision will be taken by the members of the recently constituted new pay commission.
What will change in the 8th Pay Commission
The 8th Pay Commission may bring many major changes in the salary structure of government employees. Apart from the basic salary, allowances like House Rent Allowance (HRA) and Travel Allowance (TA) are also expected to change. This will depend on the city in which the employee is posted and the type of work he does – that is, whether they have to work at a fixed rate or run around for work.
For this reason, the total salary of two employees of the same pay grade may also be different, as their allowances will be different. This system will take into account individual needs and workplace costs.
Impact on NPS and CGHS Contributions
National Pension System (NPS)
Currently, government employees contribute 10 percent of their basic salary and dearness allowance (DA), while the government contributes 14 percent. After the salary hike in the 8th Pay Commission, both these contribution amounts will also increase, which will also increase the retirement fund of the employees.
Central Government Health Scheme (CGHS)
CGHS membership is based on salary slabs. As the basic salary increases, CGHS benefits will be revised according to the new salary structure, which will provide better health facilities to the employees.
How much will the salary increase in which grade
Based on the proposed fitment rate of 2.86, the salary hike may also vary for different grades. Let’s understand what the revised salary structure may look like:
Grade 2000 (Level 3)
The basic pay in this grade may go up to ₹51,480. Including allowances like HRA and travel allowance, the total monthly salary (gross salary) may be around ₹74,845. The estimated in-hand salary after standard deduction is likely to be around ₹68,849.
Grade 4200 (Level 6)
The revised basic pay in this grade may go up to ₹93,708. The total gross salary including allowances may be around ₹1,19,798. The estimated net monthly salary after deductions could be around ₹1,09,977.
Grade 5400 (Level 9)
The basic pay in this pay grade could go up to ₹1,40,220. After adding allowances, the total salary could go up to ₹1,81,073. The in-hand salary after deductions is likely to be around ₹1,66,401.
Grade 6600 (Level 11)
The revised basic pay in this grade could be ₹1,84,452. Including all allowances, the monthly total income could be up to ₹2,35,920. After standard deductions, the in-hand salary could be around ₹2,16,825.