New Delhi, June 18: The Indian government has officially approved the formation of the 8th Pay Commission, which will revise salaries and pensions for over 1 crore central government employees and retirees. These changes are expected to come into effect from January 1, 2026.

A key focus of the 8th Pay Commission is the “fitment factor,” which determines how existing pay is multiplied to arrive at revised salaries. The 7th Pay Commission had set this factor at 2.57. For the 8th, it is likely to increase to 2.86. If this change is implemented, the minimum basic salary could rise from INR 18,000 to approximately INR 51,480. Similarly, the minimum pension may jump from INR 9,000 to INR 25,740. 8th Pay Commission Awaited Despite Cabinet Nod: What Is Fitment Factor and How Does It Impact Salaries?

Besides basic pay, allowances such as House Rent Allowance (HRA) and Travel Allowance (TA) will also be revised, depending on the employee’s posting location and job requirements. As a result, employees in the same pay grade may still draw different total salaries. 8th Pay Commission Salary Hike Update: Delay Likely Beyond January 2026, Formation Yet to Be Announced; What It Means for Fitment Factor and Basic Pay Revision.

Contributions to the National Pension System (NPS) and Central Government Health Scheme (CGHS) are also expected to increase. With higher basic pay, NPS contributions (currently 10% from employees and 14% from the government) and CGHS subscription rates will adjust accordingly.

Estimated salary hikes include:

  • Level 3 (Grade 2000): Basic pay INR 57,456; take-home pay ~INR 68,849

  • Level 6 (Grade 4200): Basic pay INR 93,708; take-home pay ~INR 1,09,977

  • Level 9 (Grade 5400): Basic pay INR 1,40,220; take-home pay ~INR 1,66,401

  • Level 11 (Grade 6600): Basic pay INR 1,84,452; take-home pay ~INR 2,16,825

These figures are projections and subject to final recommendations of the commission.

(The above story first appeared on LatestLY on Jun 18, 2025 04:49 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).