8th Pay Commission Salary Hike: Could Minimum Basic Pay Rise to INR 58,500? Latest Details Here

Mumbai, February 21: As discussions around the 8th Pay Commission gather pace, central government employees and pensioners are closely watching potential changes to the salary structure. With inflation rising and Dearness Allowance nearing a key threshold, fresh proposals suggest a major jump in the minimum basic pay.

Here is a detailed look at the latest updates and what they could mean.

Proposed Minimum Basic Pay Hike

Under the 7th Pay Commission, the minimum basic salary was fixed at INR 18,000. Now, several employee unions have proposed increasing it to around INR 34,560. More ambitious projections, based on revised economic indicators and a higher fitment factor, estimate the minimum pay could go up to INR 58,500.

The final figure will depend heavily on the revised fitment factor. At present, the fitment factor stands at 2.57. Employee bodies are demanding an increase to 3.15 or even higher. If approved, this multiplier would significantly raise salaries across all pay levels, impacting nearly 4.8 million central government employees and about 6.7 million pensioners. 8th Pay Commission Implementation Date, Arrears Update: When Will Central Govt Employees Get Salary Hike and How Much Increase Is Expected?

When Could the 8th Pay Commission Be Implemented?

Historically, Pay Commissions follow a 10 year cycle. The 7th Pay Commission was implemented in 2016, which means the next revision is expected to take effect from January 1, 2026.

However, commissions typically take 18 to 24 months to submit their recommendations. Experts believe the government may need to formally initiate the process during the 2024-25 financial year to ensure timely implementation. 8th Pay Commission Latest News: Centre To Announce DA Hike in March? 2% to 5% Rise in Dearness Allowance Likely.

So far, the Union Government has maintained that there is no immediate proposal under consideration. Despite this, mounting pressure from employee unions could push the Ministry of Finance to begin internal reviews soon.

Role of Dearness Allowance and Inflation

Rising inflation remains a key driver behind the demand for the 8th Pay Commission. The Dearness Allowance, which compensates employees for price rise, is expected to reach or exceed 50 percent of the basic pay.

Traditionally, when Dearness Allowance crosses the 50 percent mark, it strengthens the case for merging it with basic pay or revising the entire salary structure. This has fueled expectations of a comprehensive pay overhaul rather than incremental adjustments.

Economic Impact on the Government

Implementing the 8th Pay Commission would significantly increase government expenditure. Supporters argue that higher salaries will boost consumer spending and stimulate economic growth. Critics caution that such a move could widen the fiscal deficit and add inflationary pressure.

As 2026 approaches, all eyes are on whether the government will formally announce the constitution of the 8th Pay Commission and whether the minimum basic pay could indeed climb as high as INR 58,500.

For now, central government employees and pensioners await official confirmation, even as proposals for a major salary revision continue to gain momentum.

(The above story first appeared on LatestLY on Feb 21, 2026 03:43 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).