8th Pay Commission - Expectations, News and Updates

8th Pay Commission Overview

Here is the overview of the 8th Pay Commission:

1. Implementation Authority: The 8th Central Pay Commission will be managed by the Department of Personnel and Training (DoPT), which is responsible for reviewing pay scales, allowances, and pensions of central government employees.

1. Expected Fitment Factor: Reports suggest a fitment factor of 2.28, which could raise the basic pay across all levels. In some projections, this may change further depending on inflation and fiscal conditions.

1. Expected Dearness Allowance (DA): The DA is projected to reach around 70 percent by January 2026. Once the new pay commission is implemented, this DA will be merged into the basic salary to recalculate allowances like HRA and TA.

1. Implementation Date (Expected): The 8th Pay Commission is scheduled to come into effect from 1 January 2026, continuing the 10-year cycle followed by previous commissions.

1. Minimum Wage Increase: The current minimum pay of Rs.18,000 under the 7th CPC is expected to rise to around Rs.41,000 under the 8th CPC, providing a substantial hike for employees at the entry level.

1. Pension Minimum: Pensioners are also expected to benefit, with the minimum pension likely to rise from Rs.9,000 to about Rs.20,500, ensuring improved post-retirement financial security.

1. Beneficiaries: The revisions are estimated to impact about 50 lakh central government employees, including defence personnel, and around 65–68 lakh pensioners across India.

1. Official Reference: Updates and notifications will be available on the Department of Personnel and Training (DoPT) official website: https://dopt.gov.in/

8th Pay Commission Salary Calculator

The 8th Pay Commission Salary Calculator is designed to help central government employees and pensioners estimate their revised salary and allowances once the recommendations are implemented. Since the new pay scales will depend on the fitment factor, allowances, and city classification, the calculator provides an approximate projection of gross earnings.

How the Salary Calculator Works

The salary calculation is based on multiplying the current basic pay (from the 7th Pay Commission pay scale) with the proposed fitment factor, and then adding allowances such as DA, HRA, and TA. This gives an estimated figure for the revised gross salary under the 8th CPC.

Step-by-Step Calculation Guide

1. Identify your current basic pay
   1. Refer to your salary slip under the 7th Pay Commission. For example, let us assume the current basic pay is Rs.18,000.
2. Calculate the revised basic pay
   1.   Apply the expected fitment factor (for instance, 3.0).
   2. Formula:
      1. Revised Basic Pay = Current Basic Pay × Fitment Factor Example: Rs.18,000 × 3.0 = Rs.54,000
      2. Example: Rs.18,000 × 3.0 = Rs.54,000

1. Add Dearness Allowance (DA)
   1. DA is calculated as a percentage of the revised basic pay. By 2026, DA is projected to be reset to zero and then recalculated from the new structure. Assuming DA is 50%: 
      1. DA = Revised Basic Pay × 0.50
      2. Example: Rs.54,000 × 0.50 = Rs.27,000
2. Include House Rent Allowance (HRA) - HRA depends on the employee’s city classification:
   1.  Metro cities: 27% of revised basic pay
   2. Tier-2 cities: 20% of revised basic pay
   3. Tier-3 cities: 10% of revised basic pay
      1. Example (Metro city): Rs.54,000 × 27% = Rs.14,580
3.   Add Travel Allowance (TA)
   1. TA varies by job level and city category. For simplicity, assume TA is Rs.5,400
4.   Combine all components to calculate gross salary
   1. Gross Salary = Revised Basic Pay + DA + HRA + TA – Standard Deduction
   2.  Example:
      1. Revised Basic Pay = Rs.54,000
      2.  DA = Rs.27,000
      3. HRA (Metro) = Rs.14,580
      4. TA = Rs.5,400
      5.  Standard Deduction = Rs.500 (approx.)
   3. Gross Salary = 54,000 + 27,000 + 14,580 + 5,400 – 500 = Rs.1,00,480

8th CPC Salary Increase

For all Central Government employees, the 8th Pay Commission is expected to suggest a revision in the basic salary, which may fall between approximately 25% to 35%. The 8th Pay Commission will also suggest a significant increment in the retirement benefits of up to 30%.

8th Pay Commission Fitment Factor

The fitment factor is a crucial multiplier used to revise the basic pay of government employees during each Pay Commission cycle. It converts the pre-revised salary into the revised structure and directly impacts both salaries and pensions.

For the 8th Pay Commission, reports suggest that the fitment factor is expected to fall within a range of 2.28 to 2.86, depending on the final decision of the government. A higher fitment factor would naturally translate into a steeper salary hike, helping employees better cope with inflation and rising living costs.

Expected Fitment Factor and Impact

1. At the lower end (2.28), the salary hike would be moderate, offering limited relief compared to previous commissions.

1. At the higher end (2.86), the increase in basic pay would be significant, ensuring stronger compensation and retirement benefits.

As per reports, the fitment factor that will likely be used to prepare the pay matrix by the 8th Pay Commission is 2.86. Therefore, the basic salary under Level 1 will be increased to Rs.51,480. The maximum basic salary may be Rs.1.60 lakh for government employees.

1. Level 1: It includes attendants, peons, and support staff and the basic pay is expected to be revised to Rs.51,480 from Rs.8,000, which is an increase of Rs.33,480. 

1. Level 2: It includes lower division clerks, and the basic pay is raised to Rs.56,914 from Rs.19,900, which is up by Rs.37,014.

1. Level 3: It includes constables and skilled staff in the police or public services who get a basic pay of Rs.21,700 currently and this is expected to be raised to Rs.62,062, making a total increase of Rs.40,362.

1. Level 4: It includes Grade D stenographers and junior clerks and is expected to receive a basic pay of Rs.72,930 marking a significant rise of Rs.47,430 from Rs.25,500 basic pay now.

1. Level 5: It includes the senior clerks and higher-level technical staff who get a basic pay of Rs.29,200 and will revise a raise of Rs.83,512, signifying an increase of Rs.54,312.

1. Level 6: It posts of inspectors and sub-inspectors will receive a revised basic pay of Rs.1,01,244 signifying an increase of Rs.65,844.

1. Level 7: It includes section officers, superintendents, and assistant engineers may get their basic pay raised to Rs.1,28,414 from Rs.44,900, an increase of Rs.83,514.

1. Level 8: Senior section officers and assistant audit officers with Rs.47,600 basic pay will receive an increased basic pay of Rs.1,36,136, a rise of Rs.88,536.

1. Level 9: Deputy Superintendents of Police and accounts officers with a basic pay of Rs.53,100 may receive an increased basic pay of Rs.1,51,866, a raise of Rs.98,766.

1. Level 10: It includes Group A officers like entry-level officers in the civil services who receive a basic pay of Rs.56,100 who may receive a revised basic pay raised to Rs.1,60,446, which is an increase of Rs.1,04,346.

The factor that converts the old basic pay to the new basic pay is the Fitment Factor, which is a number that compares pre-revised basic pay to revised basic pay. The following is the fitment factor and other details of 4th Pay Commission to 8th Pay Commission in India:

Expected 8th Pay Commission Minimum Basic Salary Table

The following is the list of minimum basic salary of expected 8th Pay Commission:

Benefits of 8th Pay Commission Implementation

For Central Government Employees:

1. Increased Salaries: The most anticipated benefit is a hike in basic salary, estimated between 25% and 35%. This can improve living standards and provide greater financial security.

1. Enhanced Allowances: To account for inflation and shifting living expenditures, the commission may revise several benefits, including the Dearness Allowance (DA), House Rent Allowance (HRA), and Transport Allowance (TA).

1. Improved Retirement Benefits: An increase in pension could offer better financial security after retirement, with estimates suggesting up to a 30% increase.

1. Boosted Morale and Motivation: Taking care of financial issues may increase worker satisfaction and even boost output.

For the Indian Economy: 

1. Increased Spending: Government workers are likely to spend more when they have greater disposable income, which will boost demand for products and services and boost the economy.

1. Tax Revenue Growth: Increased salary may result in increased tax income for the government.

1. Reduced Financial Stress: Employee financial well-being can lessen the strain on social welfare programs and improve societal stability.

Will the 8th Pay Commission Replace the 7th CPC?

Yes, the 8th Central Pay Commission will soon replace the 7th Central Pay Commission by revising the pay scales, allowances, and pension benefits every ten years for all Central government employees and pensioners.

The 7th CPC was established in 2014 and took effect on 1 January 2016. While the 8th CPC will be established in 2024 and will be implemented on 1 January 2026 by bringing about a change in pay scales among the government employees and boosting the retirement benefits by 25%.

8th Pay Commission ToR Delay

The Terms of Reference (ToR) specify the scope and responsibilities of each Pay Commission. While the announcement of a commission is the first step, the actual work begins only after the government issues the ToR. Historically, there has always been a gap between announcement and formal notification.

Here’s a look at the timelines of past commissions:

1. 4th Pay Commission – Announced on 26 July 1983 and notified on 1 September 1983, with a delay of about one month.

1. 5th Pay Commission – Announced on 1 September 1993, but the notification came on 9 April 1994, resulting in a delay of more than seven months.

1. 6th Pay Commission – Announced on 20 July 2006 and notified on 5 October 2006, with a gap of around two and a half months.

1. 7th Pay Commission – Announced on 25 September 2013, followed by notification on 28 February 2014, creating a delay of five months.

1. 8th Pay Commission – Announced on 16 January 2025, but the ToR has not yet been issued. The delay has already crossed 200 days and continues to grow.

Key Takeaway

The 8th Pay Commission has already seen one of the longest delays in issuing its ToR compared to earlier commissions. This prolonged gap is causing uncertainty among employees and pensioners, as the commission cannot begin formal work until the notification is released.