8th Pay Commission: Good News for Government Employees! Government’s Big Step on Salary Hike

8th Pay Commission: A big piece of good news is on the way for central government employees. The government has started discussions on the Eighth Pay Commission. As a result, it is expected that the salaries, Dearness Allowance, and other benefits of employees will increase significantly. The recommendations of the Seventh Pay Commission were implemented in 2016, and a new pay commission is generally formed every 10 years. Accordingly, the recommendations of the Eighth Pay Commission are likely to be effective from January 2026. Let’s find out the details on this matter.

How Much Can the Salary Increase?

Under the Eighth Pay Commission, the salary of central government employees is expected to increase by about 13%. Although this rate of increase is slightly lower than that of the Seventh Pay Commission (14.3%), it is still a great relief for the employees. Along with the salary increase, a major change is also likely in the fitment factor.

Basic Pay and Fitment Factor

In the Seventh Pay Commission, the fitment factor was 2.57, based on which the basic pay of employees was determined. In the Eighth Pay Commission, it may be proposed to reduce this fitment factor to 1.8. If this proposal is accepted, the minimum basic pay of employees could increase from ₹18,000 to about ₹32,000. This will bring a big change to the salary structure of the employees. For example, those whose basic pay is currently ₹50,000 could see it rise to ₹90,000 under the new formula.

Dearness Allowance (DA)

An important part of the pay commission is the Dearness Allowance or DA. Currently, the DA rate is 55%. When the new pay structure is implemented, this DA will be merged with the basic pay, and the calculation of DA will start again from zero. The rule of revising DA twice a year (in January and July) to adjust for inflation will continue. It is expected that by the time the Eighth Pay Commission is implemented, the Dearness Allowance rate will exceed 60%, which will have a positive impact on the total salary of the employees.

Other Important Matters

• The new pay commission will also increase the pension amount for government pensioners.
• Along with the salary increase, other allowances for employees, such as House Rent Allowance (HRA), Travel Allowance (TA), etc., may also increase.
• The government has not yet formally announced the formation of the Eighth Pay Commission, but discussions are in the preliminary stage, and an announcement on this matter may come soon.

Overall, the Eighth Pay Commission is set to bring a new financial direction for central government employees and pensioners. More clear information on this matter will be available in the coming days, for which the employees are eagerly waiting.