
The Union Cabinet's approval of the 8th Pay Commission earlier this month marks a significant overhaul in the salary and pension structure of central government employees. With the revised pay structure expected to be implemented in 2026, the new pay scale could see a major hike in basic salaries for central government employees across all levels.
Currently, the salary structure for central government employees follows the recommendations of the 7th Pay Commission, which came into effect in 2016. The 7th Pay Commission's salary revisions were based on a fitment factor of 2.57, which served as a multiplier to increase the basic pay of employees. As a result, employees in Level 1 saw their basic pay rise from Rs 7,000 under the 6th Pay Commission to Rs 18,000. With additional allowances such as Dearness Allowance (DA), House Rent Allowance (HRA), and transport allowance, the total salary increased to Rs 36,020.
The 8th Pay Commission is expected to apply a higher fitment factor of 2.86, according to reports. This change would lead to substantial hikes in the basic pay of employees across various levels. The basic pay in Level 1, for instance, is expected to increase from Rs 18,000 to Rs 51,480—an increase of Rs 33,480.
Here’s a breakdown of the likely salary revisions for different levels under the 8th Pay Commission:
The revised pay structure will undoubtedly have a significant impact on government employees, providing them with much-needed financial relief. The increase in basic pay, alongside allowances such as DA, HRA, and transport allowance, is expected to lead to a substantial rise in the total salary, benefiting employees across various ranks and departments.
The implementation of the 8th Pay Commission is set to be a major step in addressing the financial concerns of government employees, ensuring that their salaries keep pace with inflation and rising living costs. As the commission’s recommendations are set to come into effect in 2026, government employees can look forward to a welcome financial boost in the coming years.