A big news is coming out for the central government employees and pensioners, which can bring a smile on their faces. The eighth pay commission is discussed in full swing, and according to recent reports, if it is implemented, there may be a great increase of 30–34% in government employees’ salary and pension. This change can be a relief for about 1.1 crore people, including 44 lakh central employees and 68 lakh pensioners. Come, let’s understand this news in detail and know what it matters to you.
The eighth pay commission is currently in the initial stage. The government has announced this, but the appointment of the chairman, members and rules of the Commission is yet to be appointed. Experts estimate that the new salary structure may be applicable from January 2026, but it may postpone the financial year 2026-27 if the process is delayed. According to a report by Ambit Capital, it took 18-24 months to implement the Seventh Pay Commission, and this time a similar deadline is likely. During this time the Commission will prepare its recommendations, after which the new salary will be implemented with the approval of the government.
According to reports, salary and pension are expected to increase by 30–34% under the Eighth Pay Commission. Its calculation will be based on the fitment factor, which can be between 1.83 and 2.46. For example, if the basic salary of an employee is Rs 20,000 and the Fitment Factor 2 is applied, their new salary can be Rs 40,000. This increase will be not only in basic salary, but will also increase other benefits like dearness allowance (DA), house rent allowance (HRA), and travel allowance (TA). Basic pension will also be increased for pensioners, which will further strengthen their economic condition.
About 1.1 crore people are expected to get the benefit of this pay commission. This includes 44 lakh central employees and 68 lakh pensioners. Employees will get the benefit of increase in basic salary as well as other allowances, while pensioners will mainly increase basic pension and dearness allowance. This change will not only improve their economic condition, but will also raise their standard of living. In particular, it will be a major relief for pensioners after retirement.
The previous pay commissions have also made significant changes for government employees and pensioners. The salary and allowances under the Sixth Pay Commission (2006) increased by a total of 54%, which was a major gift for the employees at that time. At the same time, the Seventh Pay Commission (2016) had increased the basic salary by 14.3% and a total of 23% in the first year including allowances. This time too, the Eighth Pay Commission is bringing a new economic hope for employees and pensioners.
The salary of central government employees consists of several parts. This includes basic salary, dearness allowance (DA), house rent allowance (HRA), travel allowance (TA), and other small benefits. Earlier the basic salary was 65% of the total package, but now it has come down to 50%. Pensioners do not get allowances like HRA and TA, so they grow mainly in basic pension and DA. For example, the minimum basic salary under the Seventh Pay Commission is Rs 18,000. If the eighth pay commission increases by 30%, it will increase to Rs 23,400.
