The 8th Pay Commission has proposed some major changes for Central Government employees, which could kick in from 2026. Key recommendations cover minimum basic pay, the fitment factor, and even the Old Pension Scheme.
The National Council of Joint Consultative Machinery has submitted its final memorandum on the 8th Pay Commission. The goal is to completely overhaul the salary and benefits for Central Government employees.
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New Reforms of the Eighth Pay Commission
The new reforms, set to be effective from January 1, 2026, recommend a massive hike in minimum basic pay from the current ₹18,000 to ₹69,000. The proposal suggests using a 3.83 fitment factor and increasing the annual salary increment to six percent.
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Changes in Pay Structure
The commission proposes simplifying the pay structure from 18 pay scales under the 7th Pay Commission to just 7. This move will make promotions and salary calculations much more transparent. For mid-level officers, this could mean their basic pay jumps from ₹1.35 lakh to ₹2.15 lakh.
Another major recommendation is bringing back the Old Pension Scheme for employees, a long-standing demand. The proposal suggests that the pension amount should be fixed at 67 percent of the last drawn salary.
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Other Benefits
The recommendations also include increasing the minimum House Rent Allowance (HRA) to 30 percent in metro cities. They also propose extending maternity leave to 240 days and increasing the duration of parental care and paternity leave.
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Five Promotions Ensured
The report also puts forward a demand to ensure every employee gets at least five promotions during their 30-year service tenure.
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Compensation for Deceased Employees
The commission has also recommended increasing the compensation and insurance coverage for the families of employees who die while in service. The final call on implementing these recommendations rests with the Central Government.
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Biggest Salary Revision
If the government accepts these proposals, it will mark the biggest salary revision for Central Government employees in recent times.
