8th Pay Commission Salary Increase, Pay Matrix, Fitment Factor & Latest News
The 8th Pay Commission is eagerly awaited by central government employees and pensioners across India. It is expected to bring a significant salary hike, revised salary slabs, and an updated salary pay matrix. While the official 8th Pay Commission date is yet to be announced, the central government 8th Pay Commission may recommend major reforms aimed at improving employee compensation.
Key Highlights Of 8th Pay Commission
| Features | Details |
| Purpose | To revise the salaries and allowances of employees and pensioners of central government. |
| Establishment date | 16th January, 2025 |
| Expected date of implementation | 1st January, 2026 |
| Beneficiaries | About 50 lakh central government employees and 65 lakh pensioners |
| Key Factors | Review of current pay structure Adjustment of allowances Pension revisions Change in fitment factor |
| Projected Fitment Factor | Between 1.83 and 2.46 |
| Dearness Allowance | Resetting to zero upon implementation |
What Is 8th Pay Commission?
The 8th Pay Commission, announced by the government, will assess the current salary structure of central government employees. Like the previous two pay commissions, the new pay panel is anticipated to suggest changes to increase the present pay structure.
Over the years, the pay structure of central government employees has evolved significantly. Before the 8th Pay Commission, the 7th Pay Commission introduced a structured pay matrix that replaced the previous grade pay system with levels. Prior to this, the 6th Pay Commission introduced pay bands with grade pay determining the status, replacing the earlier fixed pay scales.
8th Pay Commission Latest Updates
As per latest reports, the implementation of the 8th pay commission could lead to a 30-34% increase in salaries and pensions, costing the Centre an estimated Rs 1.8 lakh crore. Additionally, the fitment factor is likely to be set between 1.83 and 2.46, marking a significant boost for government employees across the country.
8th Pay Commission Implementation Date
The 8th Pay Commission is expected to come into effect on 1 January 2026, after the usual gap of 10 years between the Pay Commissions. Its clearance is likely to help about 50 lakh central government employees, including defence personnel, and 65 lakh pensioners. Its suggestions can include many aspects, such as salary hikes, new allowances, and pension increases.
Expected 8th Pay Commission Salary Pay Matrix
It is challenging to predict the exact increase in income following the 8th Pay Commission. However, experts suggest that basic salaries could rise eventually between 20% to 35%. With the calculation of 20%, the following table shows the projected salaries across different pay matrices.
| Pay Matrix Level | 7th CPC Basic Salary | 8th CPC Basic Salary |
| Pay Matrix Level 1 | Rs. 18,000 | Rs. 21,600 |
| Pay Matrix Level 2 | Rs. 19,900 | Rs. 23,880 |
| Pay Matrix Level 3 | Rs. 21,700 | Rs. 26,040 |
| Pay Matrix Level 4 | Rs. 25,500 | Rs. 30,600 |
| Pay Matrix Level 5 | Rs. 29,200 | Rs. 35,040 |
| Pay Matrix Level 6 | Rs. 35,400 | Rs. 42,480 |
| Pay Matrix Level 7 | Rs. 44,900 | Rs. 53,880 |
| Pay Matrix Level 8 | Rs. 47,600 | Rs. 57,120 |
| Pay Matrix Level 9 | Rs. 53,100 | Rs. 63,720 |
| Pay Matrix Level 10 | Rs. 56,100 | Rs. 67,320 |
| Pay Matrix Level 11 | Rs. 67,700 | Rs. 81,240 |
| Pay Matrix Level 12 | Rs. 78,800 | Rs. 94,560 |
| Pay Matrix Level 13 | Rs. 1,23,100 | Rs. 1,47,720 |
| Pay Matrix Level 13 A | Rs. 1,31,100 | Rs. 1,57,320 |
| Pay Matrix Level 14 | Rs. 1,44,200 | Rs. 1,73,040 |
| Pay Matrix Level 15 | Rs. 1,82,200 | Rs. 2,18,400 |
| Pay Matrix Level 16 | Rs. 2,05,400 | Rs. 2,46,480 |
| Pay Matrix Level 17 | Rs. 2,25,000 | Rs. 2,70,000 |
| Pay Matrix Level 18 | Rs. 2,50,000 | Rs. 3,00,000 |
Key Areas of Focus in the 8th Pay Commission
- Restructuring of Pay and Allowances: The 8th Pay Commission is set to review and revise the salary structure of all central government employees. Additionally, if approved, proposed reforms in the Modified Assured Career Progression (MACP) scheme aim to provide at least five promotions throughout an employee's career.
- Dearness Allowance (DA) and Interim Relief: As announced by the central government, the DA has been increased by 2%, raising it from 53% to 55% of Basic Pay. Furthermore, central government employees are advocating for interim financial relief until the implementation of the new Pay Commission.
- Expected Salary Hike: Central government employees are currently paid according to the 7th Pay Commission, which was implemented in 2016. The revised salaries under the 8th Pay Commission will be determined by the 'fitment factor'—a multiplier applied to the current basic pay. Reports indicate that this factor may increase from 2.57 to 2.86. Employees across all 10 levels are expected to see adjustments in their salaries and pensions.
The 8th Pay Commission will likely introduce significant modifications to the remuneration framework, allowances, and pension-related benefits of the central government workforce. With contemporary costs in mind, the commission aims to design an equitable compensation package. Although the eventual suggestions have yet to be issued, the potential salary increases and policy modifications might have a substantial impact on multiple government officials and pensioners.
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About the Author
Saloni Dhumne
A former journalist by profession, I live by the power of the written word. Specializing in personal finance, I simplify wealth planning for individuals looking to grow their money effectively. Beyond my work, I eagerly seize any opportunity to travel, exploring offbeat destinations and embracing new experiences.. Read more
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