8th Pay Commission to Raise Salaries Significantly: What You Need to Know
The 8th Pay Commission has been eagerly awaited by over 1 crore central government employees and pensioners, as it promises substantial changes to their pay and pension structure. The announcement for the formation of the 8th Pay Commission was made in January this year, but the government has yet to appoint the members of the panel. The Commission is expected to submit its recommendations next year, with the changes likely to come into effect by January 2026.
How the 8th Pay Commission Will Impact Salaries
One of the major changes anticipated in the 8th Pay Commission is the merger of Dearness Allowance (DA) with the basic salary. This would be a significant shift from previous commissions, where DA was separately calculated. The Commission is likely to adopt the same method used in previous pay commissions, which involved merging DA with the basic salary before the application of the fitment factor. However, reports suggest that this could lead to a slight reduction in the final pay when the fitment factor is applied post-merger.
For employees at Level 1, the current basic salary stands at โน18,000. With the latest 2% DA increase, the DA stands at 55%, taking the total to โน27,900. Following the fitment factor, employees can expect a significant rise in their salary. Depending on the value of the fitment factor, their salary could range between โน53,568 and โน79,794. If the fitment factor is applied at 1.92, employees can expect โน53,568. If itโs 2.57 (similar to the previous Commission), the salary could rise to โน71,703. At the highest fitment factor of 2.86, the salary could reach โน79,794.
What We Know About the 8th Pay Commission So Far
Since the announcement in January, there have been no official updates regarding the members of the Commission, but experts believe that the Commissionโs recommendations will likely be submitted in the second half of 2026. The 8th Pay Commission is expected to be implemented starting January 2026, which would bring an overhaul to the current salary structure. With the likely increase in the base pay and the merged DA, employees are eagerly waiting for the official announcement to see how it will impact their monthly pay and benefits.
The 8th Pay Commission will address the growing demands of employees and pensioners and aim to provide a more comprehensive and transparent structure, catering to the needs of the workforce while considering the challenges of inflation and economic growth.
