The Central Government has finally approved the formation of the 8th Pay Commission. Due to this, more than 1 crore central employees and pensioners are going to change the salary and pension across the country. The revised salary structure can be effective from 1 January 2026.
There will be change in fitment factor
The main focus of the 8th Pay Commission is to be on the ‘Fitment Factor’. The 7th Pay Commission had set it at 2.57, while the 8th Pay Commission is expected to increase it to 2.86. This will directly affect the basic salary and total monthly salary of the employees.
How much salary will increase?
If the fitment factor becomes 2.86, the minimum basic salary which is currently ₹ 18,000 can increase to ₹ 51,480. However, these final figures will be decided on the basis of the commission’s recommendations and the government’s decision.
There will be a change in allowances and contribution
- Along with the original salary, there will be changes in many other allowances and government schemes:
- The amount of house rent allowance (HRA) and travel allowance (TA) can be modified according to the posting and location of the employees.
- Employees will now contribute more to the National Pension Scheme (NPS), as 10% employees and 14% government contribution will also increase if salary increases.
- The membership fee of CGHS (Central Government Health Scheme) can also be higher based on increased salary slab.
Possible salary increase in various pay grade
Under the possible impact of 8th Pay Commission, there can be major changes in salary in different grades:
Grade 2000 (Level 3)
- Potential basic salary: ₹ 57,456
- Gross Salary: ₹ 74,845
- Tech-Hom Salary: ₹ 68,849
Grade 4200 (Level 6)
- Potential basic salary: ₹ 93,708
- Gross Salary: ₹ 1,19,798
- Tech-Hom Salary: ₹ 1,09,977
Grade 5400 (Level 9)
- Potential basic salary: ₹ 1,40,220
- Gross Salary: ₹ 1,81,073
- Tech-Hom Salary: ₹ 1,66,401
Grade 6600 (Level 11)
- Potential basic salary: ₹ 1,84,452
- Gross Salary: ₹ 2,35,920
- Tech-Hom Salary: ₹ 2,16,825
Final decision dependent on the commission and the government
It is noteworthy that the data mentioned above are currently based only on initial estimates. The final report of the 8th Pay Commission and the exact salary structure and allowances will be determined only after government approval. Nevertheless, it is clear that this commission will bring a big relief and hope for the central government employees and pensioners.
