The 8th Pay Commission has been accepted by the government and shall come into firm effect from January 1, 2026. It is slated to amend pay, pension, and allowances of more than 50 lakh Central Government employees and about 65 lakh pensioners. As per keeping fitment, very much of the increase in salary is due to the very factor used as a multiplier to the current basic pay.
Expected Salary Increases Between Grade Levels 1-7
Workers in Grade Pay / Pay Matrix Levels 1 to 7 will get significant increments. For example:
- The minimum basic salary under Level 1 (currently around ₹18,000) is expected to jump to roughly ₹51,480, assuming a fitment factor of ~2.86.
- Level-wise similarly, there are projections for proportional increases, meaning that an employee who is now in Level 4 (basic pay is about ₹25,500 under 7th CPC) could be going to around ₹60,000–₹70,000+ for basic pay, depending on the actual multiplier.
- These amounts are intended to reflect only the revised basic pay and do not account for DA, HRA, etc., which will be recalculated on the basis of the new basic pay.
Fitment Factor & Salary Structure
The rise in salaries depends upon the fitment factor. Under the 7th Pay Commission, it was taken as 2.57, which raised the minimum basic pay from usually ₹7,000 to ₹18,000. For the 8th Pay Commission, there are reports that it could be anywhere from 2.5 to 2.86, though some sources carry projections showing a lower bound of ~1.83. Once fixed, allowances such as DA will be reset and recalculated on this new basic salary.
When Are Employees Expected To Start Feeling The Benefit?
Expectedly, implementation will start by January 1, 2026, though final approvals and budget allocations are still awaited. The process should consist of defining the Terms of Reference (ToR), negotiating fitment, and then fixing on the actual revised pay matrices. After the approval stage has been attained, the increases will be due to employees beginning with payment of the January 2026 salaries.
What Employees Should Keep In Mind
- The exact increase would depend upon which level one is in (Grade / Pay Matrix level). Those employees at Level 1 to 7 are potential candidates for some of the higher percentage jumps since the base itself remains lower.
- There could be some modulation of the benefit after re-fixing the DA (Dearness Allowance) on the implementation of the newer Pay Commission.
- Keep track of announcements for your specific level – once the Eighth Pay Commission uploads the final fitment factor and pay matrix, you will get to know the exact numbers.
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