New Delhi. The new year 2026 may bring financial relief for central employees and pensioners. The Central Government is likely to implement the 8th Pay Commission from January 1, 2026. If this happens, it will see a major change in the salary, pension and allowances of more than one crore current and retired employees across the country.
Although the official recommendations of the 8th Pay Commission have not been released yet, based on the discussions and initial assessments, a good increase in salary is expected.
What is the objective of Pay Commission?
The central government constitutes a pay commission approximately every ten years. Its main objective is to fix the salary and pension of the employees in accordance with the current inflation, rising cost of living and the economic condition of the country. The 7th Pay Commission was implemented in the year 2016 and now its period is about to complete, hence preparations for the 8th Pay Commission are considered to have started.
Why is fitment factor most important?
Fitment factor plays the most important role in Pay Commission. On this basis, the new basic salary is decided by increasing the existing basic salary. In simple words: New Basic Salary = Old Basic Salary × Fitment Factor. According to media reports and experts, the fitment factor in the 8th Pay Commission can be between 1.83 to 2.57. If the government approves a higher fitment factor, there could be a big jump in the salaries of employees.
What could be the possible basic salary?
If fitment factor 2.57 is applied, the basic salary at different levels may increase as follows:
Level 1:Current Basic: ₹18,000, Potential New Basic: ₹46,260
level 2: Current Basic: ₹19,900, Potential New Basic: ₹51,143
Level 3: Current Basic: ₹21,700, Potential New Basic: ₹55,769
Level 4: Current Basic: ₹25,500, Potential New Basic: ₹65,535
Level 5: Current Basic: ₹29,200, Potential New Basic: ₹75,044
Pension and allowances will also be affected
Not only serving employees but also pensioners will get the benefit of 8th Pay Commission. Increase in basic salary will also increase the pension amount. Apart from this, Dearness Allowance (DA), House Rent Allowance (HRA) and other allowances will also be calculated on the basis of the new basic salary.
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