Bumper increase in the salaries of crores of employees from 12 midnight on 31st December! 8th Pay Commission has arrived, TOR also released

The new year is really going to be full of happiness for lakhs of central government employees! The 8th Pay Commission has officially started its work and the government has also released its Terms of Reference (TOR). Now everyone’s eyes are fixed on when and by how much the new salary will increase.

The fate of employees may change from January 1, 2026

The tenure of the 7th Pay Commission ends on 31 December 2025. In such a situation, there is a strong possibility that the new salary of the 8th Pay Commission will come into effect just after midnight i.e. from January 1, 2026. If this happens, the New Year gift will start coming directly into your bank account!

Fitment factor will become a game changer

This time the biggest hope is from the fitment factor. This factor will decide how many times the current basic salary will increase. Experts estimate that the fitment factor could range between 1.83 to 2.46. If this happens, the minimum basic salary may increase from Rs 18,000 to Rs 32,940 to Rs 44,280.

If compared with the 7th Commission…

In the last 7th Pay Commission, the fitment factor was 2.57, due to which there was a huge increase in the salary. If something similar happens this time too, the employees are going to be in trouble!

There will be a bumper increase in every allowance, not just basic.

The increase in fitment factor will have a direct impact not only on the basic salary but also on Dearness Allowance (DA), House Rent Allowance (HRA), Travel Allowance and all other allowances. This means there is full scope for a huge jump in take home salary.

How is fitment factor determined?

This is not decided in a day. The Commission takes into account inflation rate, cost of living, children’s education, treatment, internet bills, food expenses – everything. The final factor is finalized only after looking at all these things.

What did Ambit Capital say?

A report by renowned financial firm Ambit Capital estimates that the fitment factor could range from 1.83 to 2.46. This may increase the salary by 14% to 54%, although the possibility of 54% is less. In some other reports, estimates ranging from 1.92 to 2.57 are also being made.

Estimate of new salary according to grade pay

• Net salary of grade pay 1900: Rs 65,000 to Rs 86,000
• Grade pay of 4600: Rs 1.31 lakh to Rs 1.74 lakh
• Grade pay of 7600: Rs 1.82 lakh to Rs 2.41 lakh
• Grade pay of 8900: Rs 2.17 lakh to Rs 2.89 lakh

(These figures are based on experts’ estimates)

When will the report come, when will the commission be implemented?

Usually the Pay Commission submits its report in 18 months. The date of implementation has not been finalized yet, but most of the media reports are saying that the employees will start getting the new salary from January 1, 2026.