The 8th Pay Commission is here. The Cabinet approved it in October 2025. Justice Ranjana Desai heads it. She was a Supreme Court judge. This will change salaries for 50 lakh government workers. It will change pensions for 69 lakh retirees. Big money changes are coming.
When Will 8th Pay Commission Salary Start?
New salaries begin January 1, 2026. The commission has 18 months to work. It will finish by April 2027. Good news: salaries are effective from January 2026. You’ll get arrears later.
The 7th Pay Commission started in 2016. It’s now 2025. That’s 10 years. Pay commissions come every 10 years. So 2026 is the right time.
How Much More Salary Will You Get?
One number matters: the fitment factor. This is a multiplier. It multiplies your current pay.
The fitment factor will be 1.83 to 2.46. The 7th Pay Commission used 2.57.
You earn Rs 18,000 now? Here’s what happens:
- At 1.83: You get Rs 32,940
- At 2.46: You get Rs 44,280
Your pay goes up by 14% to 34%. But there’s a catch. The Dearness Allowance (DA) gets reset to zero. DA is now 55% of your pay. But you’ll still gain overall.
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What About House Rent and Other Allowances?
Your House Rent Allowance (HRA) will increase. Travel Allowance (TA) will go up. Dearness Allowance will restart from zero.
Don’t worry about the DA reset. Your new basic pay is much higher. You’ll earn more overall. Other benefits are improving too. Gratuity is increasing. Leave encashment is going up. EPF may rise. Pension commutation might change from 15 years to 12 years. This is good for retirees.
What Happens to Pensions in 8th pay Commission?
Retirees gain a lot here. The fitment factor applies to pensions too.
You get Rs 25,000 pension now? If the fitment factor is 2.0, your pension becomes Rs 50,000. That’s double!
Dearness Relief goes up automatically. Family pension rises too. Everyone connected to your pension gets more money. Watch out for taxes though. More pension means more tax. A pension jump from Rs 20,000 to Rs 50,000 means much higher taxes.
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Who Gets These Raises?
- About 50 lakh central government workers benefit. This includes Railways. Income Tax office workers. Postal workers. Customs staff. Everyone in central ministries.
- Army workers get raises. Navy workers get raises. Air Force workers get raises. BSF, CRPF, CISF get raises too.
- About 69 lakh retirees get higher pensions. Civil retirees get more. Defence retirees get more. Telecom retirees get more. Railway retirees get more. Postal retirees get more.
That’s over 120 lakh people. This is massive.
What About State Government Workers?
State workers might benefit later. But it’s not automatic. States usually follow central recommendations. But they make changes.
States adjust the fitment factor. They implement it later sometimes. Every state is different. Some copy central exactly. Others make their own changes. State workers should wait for their state government news.
What Is a Fitment Factor?
- Simple concept. It’s just a multiplier. That’s it.
- Your pay is Rs 15,000. Fitment factor is 2.0. Your new pay is Rs 30,000 (15,000 × 2.0).
- The 7th Pay Commission used 2.57. So Rs 15,000 became Rs 38,550.
- The 8th Pay Commission fitment factor is decided by: Inflation rate, cost of living, price of common goods. The commission studies all this.
- Only the commission can decide the exact fitment factor. Only the Cabinet can approve it.
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Why Reset Dearness Allowance to Zero?
- The DA reset happens every time. It’s normal. Why? Because your new basic pay includes inflation already.
- Right now: Your base pay plus 55% DA. Next year: Much higher base pay. No DA at first.
- Your higher base pay covers the inflation. So DA resets. This avoids counting inflation twice.
- After January 1, 2026, DA gets calculated again. It grows based on inflation. Your earning power keeps rising. Government finances stay stable.
What’s the 8th Pay Commission Supposed to Do?
The Cabinet gave clear orders. The Terms of Reference.
Review all salary structures. Recommend pay changes. Review all benefits. Think about government money. Save money for hospitals and schools.
Compare central salaries with private company salaries. Check working conditions. Look at pension costs.
This is a big job. The commission must make employees happy. The commission must keep government finances okay. Balance is key.
Who Leads the 8th Pay Commission?
Justice Ranjana Desai – Head. Former Supreme Court judge. Retired in 2014. Led the Delimitation Commission. Was the first woman head of the Press Council. She has the right experience.
Professor Pulak Ghosh – Member. Teaches at IIM Bangalore. Data science expert. Knows AI and technology. Brings modern thinking.
Pankaj Jain – Secretary. IAS officer. Works at the Petroleum Ministry. Has an MBA. Qualified accountant. Understands money very well.
Good mix. Law knowledge. Academic knowledge. Admin knowledge. Perfect team.
What Will Minimum Pay Be after 8th Pay Commission?
Current minimum pay: Rs 18,000. It will rise.
Estimates: Rs 32,940 to Rs 44,280. Some say Rs 51,480. That’s 186% more. But these are guesses. The commission will decide.
The lowest workers benefit most. Peons earn minimum pay. Attendants earn minimum pay. Support staff earn minimum pay. Their pay jumps more. They need it for inflation.
When Will the Report Come?
Commission gets 18 months. That means April 2027. The commission meets with departments. Meets state governments. Meets unions. Gathers data. Analyzes everything.
Might release early reports. Releases final report by April 2027. The government reviews it. Takes a few months. The Cabinet approves it. Then it starts.
What Should You Do Now?
- Think ahead. Your money will increase. Review your savings. Check your taxes.
- Understand fitment factor math. Estimate your new pay. Plan your finances. Know what’s coming.
- Retirees: Talk to financial advisors. New taxes are coming. Plan for higher taxes.
- Watch Department of Personnel Training (DOPT). They announce updates. Unions are negotiating. Stay updated.
8th Pay Commission: Impact on Salaries and Pensions
With the implementation of the 8th Pay Commission, the salary and pension structures of over 100 lakh employees are expected to undergo significant changes. According to experts:
- Senior employees (Level 6 to 12) can expect a 20% hike in basic pay. Additionally, they may also see increases in House Rent Allowance (HRA) and transport allowances.
- Middle and lower-level employees (Level 1 to 5) are likely to receive a 25% hike in basic pay, along with corresponding rises in HRA and transport allowances.
Around 50 lakh central government employees, including defense personnel, and over 65 lakh pensioners will benefit from these changes.
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8th Pay Commission: In a Nutshell
| Announcement | New Pay Commission has been announced by the Prime Minister Narendra Modi-led cabinet. |
| Current Status | 7th Pay Commission is in force and will remain enforced until 2026. |
| Implementation Year | Recommendations of the 8th Pay Commission are likely to be enforced from 2026. |
| Affected Employees | Over 50 lakh central government employees (including defense personnel) and 65 lakh pensioners will benefit. |
| Salary Hike Expectations | – Senior employees (Level 6-12): 20% hike in basic pay. – Middle and lower-level employees (Level 1-5): 25% hike in basic pay. |
| Additional Benefits | Hike in House Rent Allowance (HRA) and Transport Allowance expected. |
| Fitment Factor | Proposed fitment factor for the 8th Pay Commission: 3.68 (compared to 2.57 in the 7th Pay Commission). |
| Minimum Basic Pay Increase | Likely increase in minimum basic pay: From Rs. 18,000 to Rs. 51,480 (approx. 186% hike). |
| Other Expected Changes | – Revision in EPF and gratuity norms. – Possible introduction of a performance-based pay hike. |
| Purpose | To recommend salary, pension, and dearness allowance revisions to help employees and pensioners combat inflation. |
| Previous Pay Commission (7th) | Announced in 2016, suggested a pay hike of Rs. 7,000 to Rs. 18,000 with a fitment factor of 2.57. |
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Key Highlights of 8th Pay Commission
- According to The Economic Times, the 7th Pay Commission, announced in 2016, suggested a pay hike ranging from ₹7000 to ₹18,000, with a fitment factor of 2.57.
- The 8th Pay Commission is projected to introduce a substantial hike of 186%, which may raise the minimum basic pay to ₹51,480 per month.
Additional Expectations
The recommendations of the 8th Pay Commission are also expected to bring changes to:
- Employee Provident Fund (EPF) and gratuity norms.
- Salary structures and pay bands.
Furthermore, a decision on performance-based pay hikes is reportedly under consideration and will be announced soon.
Final Word on 8th Pay Commission
8th Pay Commission is big. Justice Desai leads good people. Fair decisions are coming. January 1, 2026 is start date. 120 lakh people benefit.
You’ll earn 14% to 34% more. Better benefits are coming. Higher pensions arrive. Inflation relief is real.
18 months of work begins. Big changes come for all government workers and retirees. This is major news. Get ready for 2026.
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