- Minimum basic pay could nearly double with a fitment factor around 1.96 under 8th Pay Commission
- Benefits will be effective from January 1, 2026, even if full implementation extends to 2027
- Over 50 lakh employees and 65 lakh pensioners will receive arrears after new pay structure rollout
The long-awaited 8th Pay Commission is set to bring significant hikes in salaries for central government employees and pensioners. With a fitment factor likely around 1.96, minimum basic pay could nearly double, while total pay including Dearness Allowance (DA) and House Rent Allowance (HRA) is expected to rise substantially.
Even if the full implementation of the 8th Pay Commission extends until 2027, the benefits will reportedly be effective from January 1, 2026. Over 50 lakh central employees and around 65 lakh pensioners are expected to receive arrears once the new pay structure is introduced.
What Is The Fitment Factor?
A key component of determining salaries under the 8th Pay Commission is the fitment factor. This multiplier is used to calculate a new basic salary by multiplying an employee's current basic pay.
To understand, under the 6th Pay Commission, the minimum basic salary was Rs 7,000.
The 7th Pay Commission applied a fitment factor of 2.57, raising the minimum basic salary to Rs 18,000.
For the 8th Pay Commission, reports suggest the fitment factor could range from 1.92 to 2.86, with 1.96 being a likely possibility.
How Much Will Salaries Increase?
Assuming a fitment factor of 1.96, the minimum basic salary of Rs 18,000 could rise to Rs 35,280 for Level-1 employees. This does not include DA, but House HRA will be added depending on the city of posting.
The formula to calculate the new basic salary is:
Old Basic Salary x 1.96 = Basic Salary under 8th Pay Commission
Using this formula, basic salary increases can be estimated for all levels, from Level 1 to Level 18.
Total Salary Calculation
Let's consider a Level-9 central government employee as an example:
- Current basic salary: Rs 53,100
- Current DA (58% of basic): Rs 30,798
- HRA for metro cities like Delhi (27% of basic): Rs 14,337
Total current salary (Basic + DA + HRA) = Rs 98,235
Under the 8th Pay Commission:
New basic salary: Rs 1,04,076
DA reset: 0% = Rs 0
HRA (27% of basic): Rs 28,100.52
Total salary (Basic + DA + HRA) = Rs 1,32,177
Note: that these calculations are estimates, as the official formula has not yet been finalised.
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