8th Pay Commission: After the implementation of the 8th Pay Commission, there will be a big change in the salary and pension of more than 1 crore central employees and pensioners of the country. The revised salary structure is expected to be implemented from January 1, 2026.
8th Pay Commission: The Center has approved the formation of the 8th Pay Commission. As soon as the 8th Pay Commission is implemented, there will be a big change in the salary and pension of more than 1 crore central employees and pensioners of the country. The revised pay structure is expected to come into effect from January 1, 2026.
However, the delay in the formation of the commission has raised concerns among central government employees. A major focus of the commission will be the ‘fitment factor’. While the 7th Pay Commission had set this factor at 2.57, it is likely to be increased to 2.86 under the 8th Pay Commission.
How much will the salary increase
If the ‘fitment factor’ increases from 2.57 to 2.86, then the adjustment could potentially increase the minimum basic salary from Rs 18,000 to around Rs 51,480. However, the final decision will depend on the newly appointed members of the commission.
Impact on allowances and contributions
Apart from base pay adjustments, allowances such as House Rent Allowance (HRA) and Travel Allowance (TA) may also see updates based on employee posting and travel requirements. As a result, the total income of two employees in the same pay grade may differ due to variations in their allowance entitlements.
In addition, contributions to the National Pension System (NPS) and Central Government Health Scheme (CGHS) will also be impacted. Currently, government employees contribute 10% of their basic pay and dearness allowance (DA) to the NPS, with the government contributing 14%. After the pay revision, these contributions will increase accordingly. Subscription rates for CGHS are linked to pay slabs, thus, an increase in basic pay will also result in an increase in CGHS charges.
Projected Pay Increases in Pay Grades
Initial estimates suggest robust pay increases across various pay grades. For example:
Grade 2000 (Level 3): The basic pay can rise to Rs 57,456, with a gross monthly salary of Rs 74,845 and a net take-home pay of around Rs 68,849.
Grade 4200 (Level 6): An expected basic pay of Rs 93,708 can result in a gross salary of Rs 1,19,798, leading to a total monthly salary of around Rs 1,09,977.
Grade 5400 (Level 9): The basic pay can rise to Rs 1,40,220, with a gross salary of Rs 1,81,073 and a net take-home pay of around Rs 1,66,401.
Grade 6600 (Level 11): The revised basic pay may go up to Rs 1,84,452 with gross monthly earnings expected to be Rs 2,35,920, leading to a take-home salary of around Rs 2,16,825.
Please note that the above figures are based on preliminary estimates and the actual amount may vary after the final recommendations of the 8th Pay Commission and subsequent government decisions.
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