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:
- Uniform Fitment Factor: Unlike the 7th Pay Commission’s varying fitment factors (2.57–2.81), the 8th proposes a uniform factor of 2.28. 8th Pay Commission Approved: 8th CPC To Potentially Increase Salaries by 25–30% and Pensions Proportionately, Say Industry Experts.
- Enhanced Minimum Wage: A hike to INR 41,000 addresses inflation and supports better living standards.
- Streamlined Pay Matrix: Improved clarity and ease in pay revisions are achieved through this simplified structure.
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).