8th Pay Commission: How Much Salary Hike Is Expected For Central Govt Staff & Pensioners?

8th Pay Commission Expected Salary Hike

8th Pay Commission: A total of 50.14 lakh central government employees and approximately 69 lakh pensioners have now had one question in their mind: how much pay rise is expected in the 8th Pay Commission and when it will be implemented.

The Commission-led by retired Justice Ranjana Desai has been working with due diligence since its formation to consider the wage hike recommendations, along with other aspects. The new pay commission is supposed to submit its recommendations on basic pay structure, allowances, and pension revisions to retirement benefits and service conditions, with a timeline of 18 months.

What Is Fitment Factor?

Fitment factor plays a crucial role in factoring out the hike in salaries and pensions. Fitment factor will be confirmed after the Union Cabinet approves the commission’s recommendations.

It acts as a multiplier applied to the basic pay or pension to bring it in line with the revised pay scales.

Several reports suggest that fitment factor for the 8th pay commission may be in the range of 1.86 to 2.57.

8th Pay Commission: When Will It Be Implemented?

Since the Terms of Reference (ToR) for the 8th Central Pay Commission have been notified on October 28, 2025, the panel is expected to submit its report within 18 months — that is, by April 2027.

After submission, the government usually takes around 6 months to review and implement the recommendations. This means the revised pay structure could realistically be implemented by late 2027 or early 2028.

In the latest update, Minister of State for Finance Pankaj Chaudhary has said the timing and funding of the 8th Pay Commission will be decided later.

“The 8th Central Pay Commission (CPC) has already been constituted. The Terms of Reference (ToR) of the 8th Central Pay Commission have been notified vide Ministry of Finance’ Resolution dated 03.11.2025. The number of Central Government employees is 50.14lakh and the number of pensioners is 69 lakh approximately. The date of implementation of the 8th Central Pay Commission shall be decided by the government. Government will make appropriate provision of funds for implementing the accepted recommendations of 8th CPC,” Chaudhary said in response to a query in the Lok Sabha on December 8, 2025. The question was about whether the government proposes to implement the 8th Pay Commission with effect from January 1, 2026.

8th Pay Commission Salary Calculator: How Much Salary Will Be Increased?

Going by Ambit Capital’s expectation of a fitment factor between 1.83 and 2.46, the minimum salary of central government employees may be fixed between Rs 32,940 and Rs 44,280, compared with the current Rs 18,000 a month.

A fitment factor of 1.83 would raise the basic salary from Rs 18,000 to around Rs 32,940, while a factor of 2.46 would raise it to Rs 44,280.

The final increase in salaries will depend on the fitment factor decided. The 8th Pay Commission will revise salaries, pensions, and allowances, directly benefiting over 50 lakh central government employees and over 65 lakh pensioners.

Ambit Capital in the report estimates that the 8th Pay Commission may result in a minimum 14% real hike in pay (including Basic Pay+DA) and a maximum of 54%. However, the maximum 54% hike in real pay is highly unlikely as the government could face significant financial challenges in implementing the same.

“While the government might consider a higher increase, potentially using it as a consumption stimulus, expecting a substantial 54% jump (as seen during the 6th Pay Commission) seems unlikely, since it could face significant financing challenges,” the report said.

To help employees estimate what they might earn, here are examples of revised salaries at different fitment factors 1.92 and 2.57 across select grade pays (1900, 2400, 4600, 7600, 8900). These examples also include allowances such as House Rent Allowance (HRA), Transport Allowance (TA), National Pension System (NPS), and Central Government Health Scheme (CGHS).

It is important to note that HRA is taken as 24 per cent of basic salary (for X-class cities), TA varies from Rs 3,600 to Rs 7,200 depending on the level, NPS is 10 per cent of basic, and CGHS is kept at current rates, according to India.com.

For Grade Pay 1900:

At 1.92 fitment factor:

Basic: Rs 54,528 | HRA: Rs 13,086 | TA: Rs 3,600

Gross: Rs 71,215 | NPS: Rs 5,453 | CGHS: Rs 250

Net: Rs 65,512

At 2.57 fitment factor:

Basic: Rs 72,988 | HRA: Rs 17,517

Gross: Rs 94,105 | NPS: Rs 7,299

Net: Rs 86,556

For Grade Pay 2400:

At 1.92 fitment factor: Basic: Rs 73,152 | Net: Rs 86,743

At 2.57 fitment factor: Basic: Rs 97,917 | Net: Rs 1,14,975

For Grade Pay 4600:

At 1.92: Basic: Rs 1,12,512 | Net: Rs 1,31,213

At 2.57: Basic: Rs 1,50,602 | Net: Rs 1,74,636

For Grade Pay 7600:

At 1.92: Basic: Rs 1,53,984 | Net: Rs 1,82,092

At 2.57: Basic: Rs 2,06,114 | Net: Rs 2,41,519

For Grade Pay 8900:

At 1.92: Basic: Rs 1,85,472 | Net: Rs 2,17,988

At 2.57: Basic: Rs 2,48,262 | Net: Rs 2,89,569