New Delhi, January 18: The 8th Pay Commission, effective January 1, 2026, promises significant changes in pay structures for central government employees and pensioners, addressing inflationary pressures and enhancing living standards.

A proposed Fitment Factor of 2.28 under the 8th Pay Commission will lead to a 34.1% increase in the minimum wage, raising it from ₹18,000 to ₹41,000. This adjustment aims to boost economic stability for government employees. Additionally, the Dearness Allowance (DA), expected to reach 70% by January 2026, will now be incorporated into the base salary. This integration simplifies pay calculations and improves transparency. 8th Pay Commission Approved by PM Narendra Modi: Here’s Timeline and Key Facts.

Revised Pay Matrix: Salary Enhancements Across Levels

The revised Pay Matrix covers 18 levels, ensuring structured salary adjustments. For instance:

8th Pay Commission Salary Pay Matrix Table

Pay Matrix Level

Basic Salary of 7th CPC

Basic Salary of 8th CPC

Pay Matrix Level 1

INR 18,000

INR 21,600

Pay Matrix Level 2

INR 19,900

INR 23,880

Pay Matrix Level 3

INR  21,700

INR 26,040

Pay Matrix Level 4

INR 25,500

INR 30,600

Pay Matrix Level 5

INR 29,200

INR 35,040

Pay Matrix Level 6

INR 35,400

INR 42,480

Pay Matrix Level 7

INR 44,900

INR 53,880

Pay Matrix Level 8

INR 47,600

INR 57,120

Pay Matrix Level 9

INR 53,100

INR 63,720

Pay Matrix Level 10

INR  56,100

INR 67,320

Pay Matrix Level 11

INR 67,700

INR 81,240

Pay Matrix Level 12

INR 78,800

INR 94,560

Pay Matrix Level 13

INR 1,23,100

INR 1,47,720

Pay Matrix Level 13A

INR 1,31,100

INR 1,57,320

Pay Matrix Level 14

INR 1,44,200

INR 1,73,040

Pay Matrix Level 15

INR 1,82,200

INR 2,18,400

Pay Matrix Level 16

INR 2,05,400

INR 2,46,480

Pay Matrix Level 17

INR 2.25 lakh

INR 2.70 lakh

Pay Matrix Level 18

INR 2.50 lakh

INR 3 lakh

This transparent system ensures fair pay increases across all levels.

Proposed Changes in Pay Structures

The 8th Pay Commission emphasises simplifying and standardising the pay framework:

Other Influencing Factors

The recommendations consider inflation trends, economic conditions, and proposals from the 15th Indian Labour Conference (ILC). These adjustments ensure equity and account for rising market prices of essential commodities.

The 8th Pay Commission is a step toward equitable and transparent pay for government employees, ensuring alignment with inflation, economic realities, and employee expectations. It represents a significant stride in improving employees’ financial well-being.

(The above story first appeared on LatestLY on Jan 18, 2025 11:15 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).