8th Pay Commission Update: Basic Salary Likely to Start at Rs 30,000, Not Rs 51,000

A recent report has surprised central government employees awaiting a significant salary increase under the 8th Pay Commission. The average salary increase is projected to be around 13%.

8th Pay Commission

A recent report has surprised nearly 5 million central government employees and 6.5 million pensioners who were anticipating a substantial salary increase under the 8th Pay Commission. Many believed the minimum basic pay would jump from Rs 18,000 to Rs 51,000.

However, new estimates suggest a much smaller increase, with the new minimum basic pay likely around Rs 30,000 per month. The average salary increase is projected to be about 13%, far less than the threefold increase previously anticipated.

Government Employee Salary Increase

According to a Kotak Institutional Equities report, the fitment factor under the 8th Pay Commission may be set at 1.8. This factor determines the new salary in relation to the existing salary. In the 7th Pay Commission, the fitment factor was 2.57, resulting in a substantial raise.

Based on the new projected factor, the minimum salary may only increase to Rs 30,000, which may be disappointing for many who expected a revised pay of Rs 51,000.

Minimum wage 30000

The implementation of the 8th Pay Commission is expected to take time. While the government announced the commission's formation in January 2025, the terms of reference (ToR) are still pending, and the commission members are yet to be appointed.

According to Kotak's estimates, it could take around one and a half years for the final report to be submitted, followed by an additional 3 to 9 months for approval and implementation. This means the revised pay structure may not come into effect until late 2026 or early 2027.

Pay Commission 2026 Announcement

The cost of implementing the 8th Pay Commission is expected to range from Rs 2.4 lakh crore to Rs 3.2 lakh crore, which is about 0.6% to 0.8% of the country's GDP. Grade C employees, who make up about 90% of central employees, are likely to benefit the most.

Similar to previous pay commissions, this move could boost spending in sectors like consumer goods, automobiles, and household appliances. Additionally, there could be an increase in national savings, with potential growth in investments in stock markets, bank deposits, and other assets.

Government Employees Salary

In a written reply in Parliament on July 21, 2025, Minister of State for Finance Pankaj Chaudhary confirmed that the Ministry of Finance has initiated preliminary work for the 8th Pay Commission. Inputs are being gathered from various ministries, including Defence, Home Affairs, and Personnel.

The Indian government typically introduces a new pay commission every 10 years to adjust employee salaries and pensions based on inflation and the cost of living. The 7th Pay Commission was implemented in 2016.