7th Pay Commission Vs 8th Pay Commission: Salary, Pension, DA—What Will Change?

7th vs 8th Pay Commission: What are the key differences between the 7th and the upcoming 8th Pay Commission? With talks about the 8th CPC already doing the rounds, here's a look at what might change.

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Formation and Submission Timelines

The 7th Pay Commission was set up in February 2014 and its rules kicked in from 2016. In contrast, the government officially formed the 8th Pay Commission on November 3, 2025, via a gazette notification. The 7th CPC took 21 months to submit its report, while the 8th CPC has a deadline of 18 months, with its report expected around May 2027.

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Who's Heading the Commissions?

Former Supreme Court Justice Ashok Kumar Mathur headed the 7th Pay Commission. Now, former Supreme Court Justice Ranjana Prakash Desai is in charge of the 8th Pay Commission.

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The Reference Date for Implementation

The 7th Pay Commission's recommendations were effective from a reference date of January 1, 2016. Similarly, the 8th Pay Commission will use January 1, 2026, as the reference date for all revised salaries.

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The Fitment Factor

The 7th Pay Commission used a fitment factor of 2.57. While the 8th CPC's factor isn't final, experts guess it could be between 1.92 and 2.86. Some central government estimates suggest a figure closer to 2.28 to 2.46.

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Minimum Basic Pay

The 7th Pay Commission hiked the minimum basic pay from ₹7,000 to ₹18,000. With the 8th Pay Commission, this could jump to anywhere between ₹34,560 and ₹51,480, depending on the final fitment factor.

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Dearness Allowance (DA) Calculation

Under the 7th Pay Commission, Dearness Allowance (DA) has hit 60%. Once the 8th Pay Commission kicks in, the DA is expected to be reset to zero, with the old DA amount getting merged into the basic pay.

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HRA Structure

With DA crossing 50% under the 7th CPC, House Rent Allowance (HRA) is now 30%, 20%, and 10% for X, Y, and Z cities. After the 8th CPC merges DA with basic pay, the HRA will be completely recalculated.

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Pension Scheme

The 7th Pay Commission focused on the National Pension System (NPS) for staff who joined after 2004. The 8th CPC will bring in the Centre's new Unified Pension Scheme (UPS) and also include key reforms to the existing NPS.

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Implementation Time

The 7th Pay Commission's rules were implemented back in 2016. For the 8th CPC, consultations are still on. Final recommendations are expected in 2026-27, so implementation probably won't start before 2027.

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Who Will Benefit

The 7th Pay Commission covered around 47 lakh employees and 52 lakh pensioners. The 8th Pay Commission is expected to benefit a larger group: about 48.62 lakh employees and 67.85 lakh pensioners.