8th Pay Commission: There is a lot of buzz among central government employees regarding the 8th Pay Commission. This is because the 8th Pay Commission is soon to be implemented across the country. The government is also taking swift decisions regarding the 8th Pay Commission, and according to the latest estimates, employees’ salaries are expected to increase significantly through this commission. Under the 7th Pay Commission, the minimum salary for employees is ₹18,000.
However, according to recent estimates, if the fitment factor is increased under the 8th Pay Commission, this salary will directly increase to ₹44,280. Yes, this fitment factor will increase so rapidly that employees will receive an average salary increase of 30% to 34%. The fitment factor is the figure that is applied to the current basic pay. And the new pay scale will be determined on this basis. According to experts, the current fitment factor is 2.57, and in the coming time, it will be kept at 2.46.
If this happens, employees will see an average increase of 30 to 34% in their salaries. However, in this entire process, the employees’ Dearness Allowance (DA) will be reset to zero, which will reduce the DA for some time, but the direct 34% increase in basic salary will give employees a long-term benefit. Under this entire process, the Pay Commission will also revise the structure of employees’ House Rent Allowance, Travel Allowance, and other allowances.
And today we are going to give you a complete description of this, where we will tell you which proposals will be passed under the 8th Pay Commission and what impact it will have on the employees? We will also discuss in detail the changes that will come after the 8th Pay Commission.
8th Pay Commission Latest Update
As we all know, the 8th Pay Commission is constituted every 10 years. Currently, the Seventh Pay Commission is in effect and will be completed in 2026. This means that the Seventh Pay Commission will have completed 10 years by 2026, and a new pay commission is needed after every 10 years. This is because many things change during these 10 years; the inflation rate increases, people’s lifestyles change, the cost of living changes, and there are significant changes in economic conditions.
Based on these factors, some important decisions are made under the new pay commission. Keeping all these things in mind, the Pay Commission and the Central Government have already prepared a plan to constitute the 8th Pay Commission. Work on this has also begun. It is being said that this pay commission will be permanently implemented from January 2026, with necessary changes. However, the final report will be prepared by July, and the pay commission will be finally implemented by the end of 2026 or the beginning of 2027.
During this period, all outstanding arrears will be paid to the employees. The discussion about the 8th Pay Commission has intensified because there is going to be a significant increase in the basic salary of employees. Yes, in the 8th Pay Commission, the basic salary of employees is expected to increase from ₹18,000 to ₹44,280, and this will be the biggest increase to date.
What is the fitment factor and how does it work?
The fitment factor is a fundamental figure. This figure determines how the existing basic salary will change. A multiplier is applied to the basic pay. Currently, the fitment factor is 2.57, which is multiplied by the minimum salary of ₹7,000, resulting in a salary of ₹18,000 instead of ₹7,000. In the future, it may be increased to 2.86. Some are speculating that it could even go higher than 2.57. If this happens, employees earning a minimum salary of ₹18,000 will have a basic salary of around ₹52,000 (18,000 x 2.57). However, those involved in the 8th Pay Commission suggest that the fitment factor will remain at 2.46, providing employees with a minimum salary of ₹44,280.
Salary Hike and Its Impact
As we mentioned, under the 8th Pay Commission, employees’ basic salaries will be increased. This salary will jump from ₹18,000 to ₹44,280. This increase represents a 30% to 34% increase in basic pay alone, and other allowances may increase further. Yes, the Central Government and the Pay Commission are jointly reviewing house rent allowances, travel allowances, and other allowances. If a new decision is reached, employees’ salary packages will increase further. However, it is being said that the dearness allowance will be reset to zero. Yes, when the dearness allowance of central employees reaches above 50%, it is zeroed. However, currently, the dearness allowance of central employees has reached 56%. In the future, it will be zeroed and later adjusted based on the All India Consumer Price Index data, which will then increase the actual amount received by employees.
Changes in Allowances
Under the 8th Pay Commission, not only will basic pay be changed, but the central government will also make changes to other allowances. For example, the house rent allowance will be increased, which will relieve employees of the hassle of rent. This allowance will be further increased, especially for employees living in large cities.
The central government and the Pay Commission are also planning to increase travel allowance and special allowances, details of which will be released soon.This will benefit not only employees but also pensioners, and will prove to be very beneficial for pension increases.
What challenges will the government face with the 8th Pay Commission?
While the 8th Pay Commission will be beneficial for employees and pensioners, the government will face several challenges throughout this process. For example, the increase in basic pay and pensions will be financially burdensome for the government, potentially increasing the expenditure burden on the government’s treasury. Furthermore, if employees’ salaries are increased simultaneously, their purchasing power will also increase. This increased purchasing power impacts demand and supply, which will have a direct impact on inflation. The government will now face further delays in implementing the 8th Pay Commission, as it was recently approved, and its implementation by January 2026 seems unlikely. While the 8th Pay Commission will be temporarily implemented from January 2026, it will be permanently implemented only after the final report is released, which will occur after 2027.
Conclusion
Overall, the implementation of the 8th Pay Commission will result in a significant increase in the basic salary of government employees. The increase in the fitment factor will also significantly increase the minimum salary of employees. Similarly, increases will also be seen in house rent allowance, travel allowance, gratuity, pension, etc. However, the dearness allowance will have to be reset, resulting in it being reduced to zero again, a challenge for the government. However, the government has now begun work on this entire process and will soon make an official announcement. Sources suggest that employees will also receive a temporary salary increase from January 2026.