The implementation of the 8th Pay Commission may take until 2028. Although the Union Cabinet approved it in January, no official notification has been issued yet, nor have the terms of reference been set or the list of commission members been announced. However, its effect will be considered from January 1, 2026, which means employees will receive two years of arrears.
More than 50 Lakh central government employees and about 65 Lakh pensioners will benefit from this. For Level-1 employees, the basic salary could rise from ₹18,000 to around ₹44,000. The commission may implement a fitment factor of 2.46.
How much will salaries increase in the 8th Pay Commission?
The increase in basic pay will depend on the fitment factor and DA (Dearness Allowance) merger. In the 7th Pay Commission, the fitment factor was 2.57, while in the 8th Pay Commission, it is proposed to be 2.46.
In every pay commission, DA starts at zero, because the new basic salary is already calculated keeping inflation in mind. Thereafter, DA gradually starts increasing.
At present, DA is 55% of the basic salary. With DA being reset to zero, the overall increase in salary (Basic + DA + HRA) may feel slightly less, since the 55% DA component will no longer exist.
Example
If you are at Level 6, and under the 7th Pay Commission, your current salary is:
- Basic Pay: ₹35,400
- DA (55%): ₹19,470
- HRA (Metro, 27%): ₹9,558
- Total Salary: ₹64,428
Under the 8th Pay Commission, with a 2.46 fitment factor, your new salary would be:
- New Basic Pay: ₹35,400 × 2.46 = ₹87,084
- DA: 0% (reset)
- HRA (27%): ₹87,084 × 27% = ₹23,513
- Total Salary: ₹87,084 + ₹23,513 = ₹1,10,597
What is a Fitment Factor?
It is a multiplier used to calculate the new basic salary by multiplying it with the existing basic pay. The commission decides this factor based on inflation and cost of living.
Why the delay in implementation?
Usually, it takes 2–3 years for a pay commission to be fully implemented after being set up. With only three months left in 2025, even if the commission is formed soon, preparing the report, obtaining government approval, and finalising it will take time. Past experiences with pay commissions also suggest the same.
Implementation by 2028 does not mean its impact will start only then. Pay Commissions are effective every 10 years. The 7th Pay Commission was implemented from 2016; similarly, the 8th will be considered effective from January 1, 2026. This means that salary and pension hikes will be calculated from that date.
