8th Pay Commission- Major update is here for central government employees. The Center has approved the formation of the 8th Pay Commission. As soon as the 8th Pay Commission is implemented, there will be a big change in the salary and pension of more than 1 crore central employees and pensioners of the country. The revised pay structure is expected to come into effect from January 1, 2026.
However, the delay in the formation of the commission has raised concerns among central government employees. A major focus of the commission will be the ‘fitment factor’. While the 7th Pay Commission had set this factor at 2.57, it is likely to be increased to 2.86 under the 8th Pay Commission.
How much will the salary increase
If the ‘fitment factor’ increases from 2.57 to 2.86, the adjustment could potentially increase the minimum basic pay from Rs 18,000 to around Rs 51,480. However, the final decision will depend on the newly appointed members of the commission. Apart from base salary adjustments, allowances such as House Rent Allowance (HRA) and Travel Allowance (TA) may also see updates based on employee posting and travel requirements. As a result, the total income of two employees in the same pay grade may differ due to differences in their allowance entitlements.
Besides, contributions to the National Pension System (NPS) and Central Government Health Scheme (CGHS) will also be affected. Currently, government employees contribute 10% of their basic pay and dearness allowance (DA) to the NPS, with the government contributing 14%. After the pay revision, these contributions will increase accordingly. Subscription rates for CGHS are linked to pay slabs, thus, an increase in basic pay will result in an increase in CGHS charges as well.
Estimated Pay Increase in Pay Grade
Grade 2000 (Level 3): The basic pay can go up to Rs 57,456, with the gross monthly salary reaching Rs 74,845 and net take-home pay reaching around Rs 68,849.
Grade 4200 (Level 6): Expected Basic Pay of Rs 93,708 can result in a Gross Pay of Rs 1,19,798, making the total monthly salary to be around Rs 1,09,977.
Grade 5400 (Level 9): Basic pay can go up to Rs 1,40,220 with gross pay up to Rs 1,81,073 and total take-home pay of around Rs 1,66,401.
Grade 6600 (Level 11): The revised basic pay may go up to Rs 1,84,452, with gross monthly income expected to be Rs 2,35,920, leading to a take-home salary of around Rs 2,16,825.
Please note that the above-mentioned figures are based on preliminary estimates and the actual amount may vary after the final recommendations of the 8th Pay Commission and subsequent government decisions.