8th Pay Commission

8th Pay Commission Update: Central Government Employees’ Salary May Rise to ₹51,480, Fitment Factor Likely at 2.86

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May 22, 2025 | New Delhi: Central government employees and pensioners may soon receive a substantial financial boost as the Centre is reportedly preparing to implement the 8th Pay Commission. If implemented as per expectations, the new pay structure could be rolled out by January 1, 2027, leading to a sharp jump in salaries and benefits.

8th Pay Commission

Big Salary Hike Expected: Level-1 Basic Pay May Go Up to ₹51,480

Currently, a Level-1 central employee earns a basic salary of ₹18,000 per month. Under the proposed 8th Pay Commission, the fitment factor — which determines how much the basic pay is multiplied — is expected to be set at 2.86. With this adjustment, the revised basic pay could go up to ₹51,480, representing a massive salary jump of nearly three times the current amount.

Employees in Level-2, who currently receive a basic pay of ₹18,900, are also likely to benefit from an even more lucrative revised structure once the new pay commission is implemented.

Timeline: What History Suggests

While no official implementation date has been announced, traditionally, a new pay commission is introduced every 10 years. The 7th Pay Commission was implemented on January 1, 2016. Following this precedent, the 8th Pay Commission could logically be enforced from January 1, 2027, though the government has yet to release a formal notification.

Reports suggest that the Centre has already approved the formation of the 8th Pay Commission, sparking widespread optimism among over 1 crore central government employees and pensioners.

Dearness Allowance (DA) Already at 55%

Alongside the expected pay commission benefits, central employees are currently receiving 55% Dearness Allowance (DA), which was increased by 2% recently, up from 53%. DA is a crucial component of a government employee’s salary and is revised twice a year — typically in January and July — to counter inflation.

The DA hike already provides significant interim relief, but the upcoming pay commission is expected to further improve the financial well-being of government employees.

What This Means for Employees

The implementation of the 8th Pay Commission will significantly improve take-home pay, retirement benefits, and pensions, thereby enhancing the standard of living for lakhs of government staff. Apart from basic salary revisions, employees are also expected to benefit from revised HRA, transport allowance, and medical reimbursements.

With the Centre’s approval in place and economic indicators favorable, all eyes are now on an official rollout timeline from the Ministry of Finance.

Author Profile

Ganpat Singh Chouhan
Ganpat Singh Chouhan
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 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.