New Delhi, June 21: The Centre has officially approved the formation of the 8th Pay Commission, which is set to revise the pay structure and pension benefits for more than 1 crore central government employees and retirees. The revised pay scales are expected to come into effect from January 1, 2026, with an aim to align government compensation with current economic conditions.

A key highlight is the anticipated increase in the fitment factor—a crucial multiplier used to recalculate basic pay. While the 7th Pay Commission had set it at 2.57, early indications suggest the 8th Commission may raise it to 2.86, which could increase the minimum basic salary from INR 18,000 to INR 51,480, and minimum pension from INR 9,000 to INR 25,740. 8th Pay Commission Update: What Changes Can Central Govt Employees Expect in Basic Pay and Allowances?

In addition to basic pay, allowances such as House Rent Allowance (HRA) and Travel Allowance (TA) are also likely to be revised. These would vary based on job roles and locations, resulting in different take-home salaries even within the same pay grade. 8th Pay Commission Awaited Despite Cabinet Nod: What Is Fitment Factor and How Does It Impact Salaries?

Salary revisions will also impact contributions to the National Pension System (NPS) and Central Government Health Scheme (CGHS). As NPS contributions are linked to basic pay—10% from employees and 14% from the government—higher salaries will result in increased contributions. Similarly, CGHS subscription charges, tied to pay levels, will also rise.

Estimated salary projections include:

  • Level 3 (Grade 2000): INR 57,456 basic | INR 68,849 net take-home

  • Level 6 (Grade 4200): INR 93,708 basic | INR 1,09,977 net

  • Level 9 (Grade 5400): INR 1,40,220 basic | INR 1,66,401 net

  • Level 11 (Grade 6600): INR 1,84,452 basic | INR 2,16,825 net

Final figures will be determined after the commission’s recommendations and cabinet approval.

(The above story first appeared on LatestLY on Jun 21, 2025 01:32 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).