8th Pay Commission: Expected Pay Hike for Central Government Employees Across Levels 1 to 18 Explained

New Delhi, December 27: Central government employees could be in for a significant financial boost from January 1, 2026, as the tenure of the 7th Pay Commission ends on December 31, 2025 and expectations rise around the 8th Pay Commission. While the government is yet to officially notify the new commission, discussions on potential salary hikes and the crucial fitment factor have already gained momentum among employee unions and payroll experts.

A Pay Commission is typically set up once every decade to revise the basic pay, allowances, and pensions of central government employees and pensioners. The final salary revision under the 8th Pay Commission will only be known after its report is submitted and approved by the Union Cabinet, but early estimates suggest a meaningful jump in take-home pay. 8th Pay Commission Latest Update: Timeline, Eligibility and When Will Revised Salaries and Pensions Be Credited?

What Is a Pay Commission and Why It Matters?

Pay Commissions play a key role in restructuring salaries in line with inflation, cost of living, and economic growth. Historically, each commission has introduced a fitment factor, a multiplier applied to the existing basic pay to arrive at the revised salary.

• 6th Pay Commission: Fitment factor of 1.92

• 7th Pay Commission: Fitment factor of 2.57

For the 8th Pay Commission, experts are discussing fitment factors of 1.92, 2.15, or even 2.57, depending on macroeconomic conditions and Dearness Allowance (DA) trends.

How Central Government Pay Levels Are Structured

Central government employees are placed under Pay Levels 1 to 18:

• Level 1: Entry-level staff (formerly Group D)

• Level 18: Highest post, including the Cabinet Secretary

Between these are 16 levels covering Group A, B, C, and D employees across ministries and departments. 8th Pay Commission Latest Update: Who Is Eligible for Salary Hike, Expected Increase and Implementation Timeline.

What Could Be the Fitment Factor in the 8th Pay Commission?

According to payroll and pension experts, the fitment factor under the 8th Pay Commission will be influenced by several factors:

• Existing Dearness Allowance (DA)

• Expected DA increase till implementation

• Annual increments

• Average family size and rising living costs

Employee associations are pitching for a fitment factor of around 2.13, calling it a balanced approach between fiscal prudence and employee welfare.

Current Basic Pay Under the 7th Pay Commission (INR)

• Level 1: INR 18,000

• Level 5: INR 29,200

• Level 10: INR 56,100

• Level 15: INR 1,82,200

• Level 18: INR 2,50,000

Estimated Salary If Fitment Factor Is 1.92

• Level 1: INR 34,560 (Increase: INR 16,560)

• Level 5: INR 56,064 (Increase: INR 26,864)

• Level 10: INR 1,07,712 (Increase: INR 51,612)

• Level 15: INR 3,49,824 (Increase: INR 1,67,624)

• Level 18: INR 4,80,000 (Increase: INR 2,30,000)

Estimated Salary If Fitment Factor Is 2.15

• Level 1: INR 38,700

• Level 5: INR 62,780

• Level 10: INR 1,20,615

• Level 15: INR 3,91,730

• Level 18: INR 5,37,500

Estimated Salary If Fitment Factor Is 2.57

• Level 1: INR 46,260

• Level 5: INR 75,044

• Level 10: INR 1,44,177

• Level 15: INR 4,68,254

• Level 18: INR 6,42,500

Why the 8th Pay Commission Is Crucial

A higher basic pay under the 8th Pay Commission will automatically raise DA, HRA, and pension benefits. This is expected to improve purchasing power for employees and retirees, while also boosting consumption and overall economic activity.

For now, these figures remain indicative. The final impact will depend on the official recommendations of the 8th Pay Commission and the government’s approval.

(The above story first appeared on LatestLY on Dec 27, 2025 04:03 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).