New Delhi, May 25: The Central Government has officially announced the 8th Pay Commission, expected to revise salaries, pensions, and service conditions for over 1 crore government employees and pensioners. Although the panel was announced on January 16, 2024, its Terms of Reference (ToR) are yet to be finalised, and members are yet to be appointed. Once formed, the commission may take at least a year to submit its report, pushing implementation beyond the expected January 1, 2026 timeline.

Historically, a Pay Commission is formed every 10 years, with the 7th Pay Commission being implemented from January 1, 2016. It introduced the Pay Matrix system, replacing the old grade pay model, and defined levels from 1 to 18 based on post and service. Level 1 includes roles such as clerks and MTS, while Level 18 is reserved for top officials like the Cabinet Secretary. 8th Pay Commission Set To Boost Salaries: Here’s What a Higher Fitment Factor Could Mean for Govt Employees.

A major point of interest is the fitment factor, which determines the base salary multiplication. The 7th CPC used a 2.57 multiplier. For the 8th Pay Commission, speculation suggests a fitment factor between 1.92 and 2.86, though former Finance Secretary Subhash Chandra Garg expects a conservative 1.92. 8th Pay Commission: Employee Unions To Demand Uniform Fitment Factor Across Pay Bands to Reduce Salary Disparity.

If implemented, a Level 1 employee currently earning a basic pay of INR 18,000 could see it rise to INR 34,560. With Dearness Allowance (DA) estimated at 57%, HRA at 24%, and other allowances, the gross monthly salary could reach INR 58,374, and net salary could rise to INR 52,898, marking a monthly hike of INR 15,044 — a 39.74% increase.

DA is revised twice a year and currently stands at 55%, likely to increase again in July 2025. HRA and Transport Allowance (TA) vary by city class. Government jobs also offer benefits such as LTC, CGHS, education allowances, and NPS contributions.

While implementation is unlikely by January 2026, the pay revision will significantly impact the financial security of employees once enforced. Unions are also demanding interim relief until the recommendations are rolled out.

(The above story first appeared on LatestLY on May 25, 2025 07:01 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).