New Delhi, June 29: The Union Cabinet has officially approved the implementation of the 8th Pay Commission, set to take effect from January 1, 2026, marking a significant revision in the pay structure for nearly 48.62 lakh central government employees and 67.85 lakh pensioners. The new framework aims to align salaries with current inflation, economic demands, and employee expectations.

A Fitment Factor of 3.00 has been proposed, indicating a potential 34.1% hike in basic pay, increasing the minimum monthly salary from INR 18,000 to approximately INR 21,600. The Dearness Allowance (DA), expected to touch 70% by early 2026, will be merged with the revised basic pay for a streamlined hike. Revised salaries are expected to fall between INR 20,000 and INR 25,000, depending on grade and location. 8th Pay Commission Fitment Factor: What Central Government Employees Can Expect in New Salary Structure.

Pensioners are also likely to benefit, with minimum pension projections reaching INR 20,500. This move reflects a broader attempt to ensure fair compensation and improved financial well-being for retired personnel. 8th Pay Commission To Triple Medical Allowance and Raise Minimum Salary to INR 27,000? Check Details.

To estimate revised salaries, employees can use a simple formula:

Revised Pay = Basic Pay × 3.00,

DA = 50% of Revised Pay,

HRA depends on location (Metro: 27%, Tier-2: 20%, Tier-3: 10%),

plus applicable Travel Allowance, minus standard deductions.

Historically, each Pay Commission has introduced significant hikes, with the 8th Commission expected to bring one of the most impactful revisions since the 6th Pay Commission’s 54% hike.

Employees and pensioners can track updates on the Department of Personnel and Training’s official website: https://dopt.gov.in.

(The above story first appeared on LatestLY on Jun 29, 2025 08:54 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).