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The Indian government has approved the 8th Pay Commission for central government employees.
Implementation of the revised salaries and pensions will begin on January 1, 2026.
The proposed fitment factor may increase from 2.57 to 2.86, affecting salary scales significantly.
8th Pay Commission: The Indian government has approved the 8th Pay Commission, set to revise salaries and pensions for over 1 crore central government employees and pensioners. Implementation is expected from January 1, 2026. A key focus is the “fitment factor”, a multiplier used to adjust pay scales. While the 7th Pay Commission used a factor of 2.57, the 8th may propose an increase to 2.86, potentially raising the minimum basic salary from Rs 18,000 to Rs 51,480 and pensions from Rs 9,000 to Rs 25,740. Final recommendations will be made by the appointed commission members.
Understanding the 8th Pay Commission’s Impact on Salaries and Allowances (Estimated)
The 8th Pay Commission is set to bring significant changes to the salary structure of government employees. Here’s what you need to know:
Revised Allowances and Basic Pay Adjustments (Estimated)
Along with basic salary adjustments, other allowances like House Rent Allowance (HRA) and Travel Allowance (TA) will also be revised based on location and job-related travel.
This means two employees on the same pay level may receive different gross earnings due to varying allowances.
Impact on NPS and CGHS Contributions (Estimated)
National Pension System (NPS) Contributions: Government employees contribute 10% of their basic pay and dearness allowance (DA) to NPS, while the government contributes 14%. These contributions will increase following salary revisions.
Central Government Health Scheme (CGHS): Charges under CGHS will be updated based on revised salary levels.
Projected Salary Revisions (Estimated)
Using a fitment factor of 2.28, projected salaries for various grades have been calculated. Here are some examples¹:
Grade 2000 (Level 3): Basic pay revised to Rs 57,456, with HRA and TA bringing gross salary to Rs 74,845. Net salary after deductions: Rs 68,849.
Grade 4200 (Level 6): Basic pay revised to Rs 93,708, with gross salary reaching Rs 1,19,798. Net salary after deductions: approximately Rs 1,09,977.
Grade 5400 (Level 9): Revised basic salary of Rs 1,40,220, with total gross earnings of Rs 1,81,073. Net take-home pay: around Rs 1,66,401.
Grade 6600 (Level 11): Revised salary of Rs 1,84,452, with gross income reaching Rs 2,35,920. Net salary after deductions: Rs 2,16,825.
(All the revised salary figures mentioned are estimated; actual amounts may vary based on final government decisions.)
