The 8th Pay Commission may take until 2028 to be fully implemented. The Union Cabinet approved it in January, but the official notification has not been issued, the terms of reference are not finalized, and the list of commission members has not been released.
The new pay commission will benefit over 50 lakh central government employees and about 65 lakh pensioners. The basic salary of Level-1 employees may rise from ₹18,000 to ₹44,000. The commission may use a 2.46 fitment factor to calculate salaries.
The increase in basic salary depends on the fitment factor and the DA (Dearness Allowance) merger. In the 7th Pay Commission, the fitment factor was 2.57, while in the 8th, it may be 2.46.
In every pay commission, DA starts from zero because the new basic salary already considers inflation. After this, DA gradually increases again.
Currently, DA is 55% of basic pay. If DA is removed, the increase in total salary (Basic + DA + HRA) may appear smaller because the 55% DA component is reset.
Example:
A Level-6 employee’s current salary under the 7th Pay Commission:
- Basic Pay: ₹35,400
- DA (55%): ₹19,470
- HRA (Metro, 27%): ₹9,558
- Total Salary: ₹64,428
If a fitment factor of 2.46 is applied under the 8th Pay Commission:
- New Basic Pay: ₹35,400 × 2.46 = ₹87,084
- DA: 0% (reset)
- HRA (27%): ₹87,084 × 27% = ₹23,513
- Total Salary: ₹87,084 + ₹23,513 = ₹1,10,597
The fitment factor is a multiplier applied to the existing basic salary to calculate the new basic pay. The Pay Commission decides this considering inflation and living costs.
Estimated Basic Salary under 8th Pay Commission
| Pay Matrix Level | 7th Pay Commission Basic (₹) | 8th Pay Commission Estimated Basic (₹) |
|---|---|---|
| Level 1 | 18,000 | 44,280 |
| Level 2 | 19,900 | 48,974 |
| Level 3 | 21,700 | 53,466 |
| Level 4 | 25,500 | 62,850 |
| Level 5 | 29,200 | 71,923 |
| Level 6 | 35,400 | 87,084 |
| Level 7 | 44,900 | 1,10,554 |
| Level 8 | 47,600 | 1,17,177 |
| Level 9 | 53,100 | 1,30,386 |
| Level 10 | 56,100 | 1,37,826 |
| Level 11 | 67,700 | 1,66,452 |
| Level 12 | 78,800 | 1,93,728 |
| Level 13 | 1,23,100 | 3,02,226 |
| Level 13A | 1,31,100 | 3,22,311 |
| Level 14 | 1,44,200 | 3,54,172 |
| Level 15 | 1,82,200 | 4,48,713 |
| Level 16 | 2,05,400 | 5,05,584 |
| Level 17 | 2,25,000 | 5,53,500 |
| Level 18 | 2,50,000 | 6,15,000 |
Full implementation by 2028 does not mean employees will get benefits only from 2028. Pay Commissions are generally applied retroactively.
The 8th Pay Commission’s effective date is set as January 1, 2026. This means salary and pension increases will be counted from this date.
Past Pay Commission Implementation:
- 5th Pay Commission: Formed in April 1994, report submitted January 1997, implemented from January 1, 1996. Previous 51 pay scales reduced to 34.
- 6th Pay Commission: Established October 20, 2006, report prepared March 2008, approved August 2008, implemented from January 1, 2006.
- 7th Pay Commission: Formed February 2014, terms finalized March 2014, report submitted November 2015, approved June 2016, implemented from January 1, 2016.
