The 8th Pay Commission (8th CPC) has officially received approval from the Union Cabinet, marking a major milestone for central government employees. The government has not only approved the Terms of Reference (ToR) for the new pay commission but also appointed its chairperson.
Former Supreme Court judge Ranjana Prakash Desai has been selected as the Chairperson of the 8th Pay Commission. According to official details, the Commission will submit its report within 18 months of its formation, and the new pay structure is expected to be implemented by January 1, 2026.
What Are the Terms of Reference (ToR)?
The Terms of Reference outline how the commission will function — its scope of work, duration, and members involved. With Cabinet approval and the implementation timeline set for early 2026, employees across the country are eagerly waiting to know one key question:
How much will their salary increase under the 8th Pay Commission?
Expected Salary Hike Under the 8th Pay Commission
The salary revision formula is expected to follow the same structure used during the 7th Pay Commission. When the 7th CPC came into effect, the minimum basic pay was raised from ₹7,000 to ₹18,000 — a significant jump of 2.57 times.
If a similar pattern continues, the minimum basic salary under the 8th Pay Commission could increase from ₹18,000 to ₹51,480.
The fitment factor will play a major role in determining this salary increase. Additionally, the Dearness Allowance (DA) merger will be included in the new structure, influencing the final salary figure for all employees.
8th Pay Commission Salary Calculation (Expected)
The final salary increase will depend mainly on two factors:
- Fitment Factor
- Dearness Allowance (DA)
Under the 7th Pay Commission, the fitment factor was 2.57.
Under the 8th CPC, experts expect it to increase to 2.86.
When a new pay commission is implemented, the DA resets to 0% because the new basic pay already includes the inflation component. As of now, the DA under the 7th CPC is 58%.
Salary Comparison: 7th Pay Commission vs. 8th Pay Commission
| Component | 7th Pay Commission | 8th Pay Commission (Expected) |
|---|---|---|
| Basic Pay | ₹25,000 | ₹25,000 × 2.86 = ₹71,500 |
| Dearness Allowance (DA) | 58% = ₹14,500 | 0% |
| House Rent Allowance (HRA) | 27% = ₹6,750 | 27% = ₹19,305 |
| Total Salary | ₹25,000 + ₹14,500 + ₹6,750 = ₹46,250 | ₹71,500 + ₹19,305 = ₹90,805 |
✅ Expected Total Salary: ₹90,805 per month
This means the monthly income could rise by nearly double, benefiting millions of central government employees.
Impact on Pensioners
Not just working employees — pensioners will also see a substantial increase.
For example:
If a retired employee’s basic pension is currently ₹9,000, after the 8th Pay Commission implementation (using the 2.86 fitment factor), it could increase to ₹25,740.
What Is the Fitment Factor?
The fitment factor is a multiplier used to revise the basic salary and pension of government employees based on inflation and cost of living.
In simple terms, your new basic pay under the 8th CPC can be calculated using this formula:
New Basic Pay = Current Basic Pay × Fitment Factor
For example:
If your current basic pay is ₹25,000 and the new fitment factor is 2.86, then —
₹25,000 × 2.86 = ₹71,500
When Will the 8th Pay Commission Be Implemented?
- Formation: Approved by Cabinet (2025)
- Report Submission: Within 18 months
- Expected Implementation: January 1, 2026
Once implemented, it will bring a major boost in take-home salaries and pensions, improving the financial well-being of over 50 lakh central government employees and 60 lakh pensioners across India.
The 8th Pay Commission is set to significantly raise salaries — from ₹25,000 to ₹71,500 for many employees — with a fitment factor of 2.86 and enhanced allowances.
This reform will not only improve employee morale but also stimulate spending and boost the economy.
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