8th Pay Commission: Over 1 crore central government employees and pensioners are keenly observing news and developments around the new pay panel, which will replace the existing 7th Pay Commission.
While the announcement of the formation of the 8th Pay Commission was made in January this year, the government is yet to appoint the members of the panel, which is expected to come out with its recommendations to revise salary and pension by next year.
One of the major points of discussion for employees and pensioners has been about the possibility of the merger of dearness allowance (DA) with the basic pay. After the recent 2% DA hike, the DA stands at 55% now.
Under the previous pay commissions, the basic pay got merged with DA before the fitment factor was applied. The same approach is expected from the 8th Pay Commission. Reports, however, suggest that the fitment factor could be lower in case it is applied after merging basic pay with DA.
The minimum basic pay at Level 1 for a government employee is Rs 18,000 under the 7th Pay Commission and if 55% DA is merged with the basic, it comes to Rs 27,900. Going by the past experience, the fitment factor could be applied on Rs 27,900 instead of Rs 18,000. Based on various reports, the new pay panel may suggest a fitment factor between 1.92 and 2.86.
So, if the fitment factor of 1.92 is applied, then the salary will be Rs 53,568
If the fitment factor is 2.57 (as it was earlier), then the salary will increase to Rs 71,703
If it is 2.86, then the salary can become Rs 79,794.
That is, employees who are working on a basic salary of Rs 18,000 today can get a salary of Rs 53,000 to Rs 79,000 in the future.
8th Pay Commission: What has happened since January?
From the beginning of 2025 till now, continuous activities have been seen regarding the 8th Pay Commission:
On January 16, the government announced the formation of the 8th Pay Commission and said that the names of the panel members would be announced soon.
Why is a new pay commission necessary?
Employees are troubled by rising inflation every month. The last major change in salary was in January 2016. It has been almost 9 years now. Pensioners also want their monthly pension to be improved according to the current standard of living. Transparency and stability are expected in salary and pension.
Although the government has not yet made an official announcement, it is believed that the 8th Pay Commission may give their recommendations in the second half of 2026. The 8th Pay Commission is scheduled to be implemented from January 1, 2026.