New Delhi, October 28 (Daily Kiran)। The 8th Central Pay Commission has officially been constituted by the Modi government to revise pay scales and allowances for central government employees. The decision is set to benefit over 50 lakh employees and around 69 lakh pensioners across the country. The most pressing question now is — how much will salaries actually rise, and what will employees take home?
Commission to Submit Report in 18 Months
After the Cabinet meeting chaired by the Prime Minister, Information and Broadcasting Minister Ashwini Vaishnaw announced that the Commission will submit its recommendations within 18 months. It may also present an interim report if required.
The Commission will be headed by Justice (Retd.) Ranjana Prakash Desai, former Supreme Court judge. Prof. Pulak Ghosh from IIM Bangalore has been appointed as a part-time member, while Pankaj Jain, Secretary in the Ministry of Petroleum and Natural Gas, will serve as the Member-Secretary.
According to the official statement, the Commission will take into account the nation’s economic condition and financial discipline while drafting its recommendations. The aim is to ensure that sufficient resources remain available for development and welfare schemes. The recommendations are expected to come into effect from January 1, 2026, following the 10-year revision cycle — the last Pay Commission’s recommendations came into force on January 1, 2016.
Commission to Review Pension Schemes Too
The 8th Pay Commission has also been directed to review the financial aspects of the non-contributory pension scheme for employees. Additionally, it will assess the financial condition of state governments, as most states revise their pay structures based on the Central Pay Commission’s recommendations.
Salary Hike Depends on ‘Fitment Factor’
The actual increase in pay will depend primarily on the fitment factor and the adjustment of Dearness Allowance (DA). In the 7th Pay Commission, the fitment factor was fixed at 2.57, meaning the new basic pay was 2.57 times the old one. For the 8th Commission, the government’s decision on this factor will determine the exact salary rise.
It’s important to note that after every new Pay Commission is implemented, the DA is reset to zero, as inflation is already factored into the revised basic pay. Currently, DA stands at 55% of basic pay, so the overall salary structure may appear slightly adjusted initially due to this reset.
Sample Salary Calculation (Level-5 Employee)
To understand the expected hike, here’s an example of a Level-5 central employee:
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Current Basic Pay (7th CPC): ₹29,200
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DA (55%): ₹16,060
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HRA (Metro, 27%): ₹7,884
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Total Current Pay: ₹53,144
If the fitment factor is revised to 2.0 under the 8th Pay Commission, the new pay will be:
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New Basic Pay: ₹29,200 × 2 = ₹58,400
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Dearness Allowance: 0% (reset)
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House Rent Allowance (Metro, 27%): ₹15,768
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Total Revised Pay: ₹74,168
This means a rise of around ₹21,000 per month, depending on grade level and posting city. Using the same formula, employees from Class C staff to senior officers can estimate their new salary once the 8th Pay Commission is implemented.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
