8th Pay Commission update: The central government employees and pensioners are closely watching for updates on the 8th Pay Commission a panel expected to recommend a major hike in salaries and pensions by revising the pay structure currently in place since 2016. Readers should note that the 7th Pay Commission is set to expire in January 2026 no update yet about the 8th Pay Commission has been announced yet. However here are all the details you should know about whats expected from the 8th Pay Commission. 8th Pay Commission: How much salary would rise? Currently central government employees earn a median monthly salary of Rs 1 lakh before tax. Based on different budget allocations the firm projected possible salary increases. If the government allocates Rs 1.75 lakh crore for the 8th Pay Commission and half of this amount is used for salary revision while the rest is for pensions the median salary could rise to Rs 114600 per month. If the allocation increases to Rs 2 lakh crore salaries may go up to Rs 116700 per month and with an allocation of Rs 2.25 lakh crore the median salary could reach Rs 118800 per month. 7th Pay Commission vs 8th Pay Commission? For comparison the implementation of the 7th Pay Commission in 2016 had cost the government Rs 1.02 lakh crore according to the report. Although the revised salaries and pensions were applied retrospectively from January 2016 they were actually rolled out from July 2016 impacting the financial year 2016-17 said Goldman Sachs. How will 8th Pay Commission decide new salaries? Once formed the 8th Pay Commission will consult with various stakeholders to determine the fitment factor and other details regarding salary and pension revisions. Employee unions have hinted that they may demand a fitment factor of 2.57 or higher similar to what was recommended under the 7th Pay Commission. When will 8th Pay Commission be implemented? Although the 7th Pay Commission is set to expire in January 2026 no update yet about the 8th Pay Commission has been announced yet. (With inputs from agencies)