The 8th Pay Commission is set to bring a major salary revision for millions of central government employees and pensioners. Approved by the Government of India in January 2025, it will replace the 7th Pay Commission which has been in effect since 2016. Employees are expecting a 14%–34% salary hike along with revised allowances and pensions.
What is the 8th Pay Commission?
The Pay Commission is a government-appointed body that reviews and updates the pay structure of central government employees. The 8th Pay Commission will:
- Revise basic pay
- Reset Dearness Allowance (DA) to 0%
- Recommend changes in pensions and allowances
- Affect over 1 crore employees and pensioners
Expected Salary Hike & Fitment Factor
The salary hike will largely depend on the fitment factor, which is applied to the current basic pay.
- Fitment Factor Estimate: 1.8 to 2.46
- Base Case Hike: ~14%
- Median Estimate Hike: ~34%
- Upper Range: Up to 54% (as per some analysts)
8th Pay Commission Salary Calculator (Expected)
Below is a Grade-wise estimated salary hike table based on different fitment factors:
| Employee Grade | Current Basic Pay (7th CPC) | New Pay @ 1.8x | New Pay @ 2.26x | New Pay @ 2.46x |
|---|---|---|---|---|
| Grade C (Level 1) | ₹18,000 | ₹32,400 | ₹40,680 | ₹44,280 |
| Grade B (Level 6) | ₹35,400 | ₹63,720 | ₹79,004 | ₹86,484 |
| Grade A (Level 10) | ₹56,100 | ₹1,00,980 | ₹1,26,786 | ₹1,38,006 |
| Senior Officer (Level 13) | ₹1,23,100 | ₹2,21,580 | ₹2,78,206 | ₹3,02,826 |
Note: These figures are illustrative estimates based on industry reports and not official government figures. Final hikes will depend on the approved fitment factor.
Implementation Date
- Report Submission: Expected late 2025
- Likely Implementation: January 2026 or early 2027
- DA Reset: Will restart at 0% post-implementation
Who Will Benefit?
- Central Government Employees (All Grades)
- Defence Personnel
- Retired Pensioners and Family Pensioners
Economic Impact
The salary increase is expected to:
- Boost consumer spending in sectors like automobiles, real estate, and electronics
- Contribute to GDP growth
- Add an estimated ₹1.8–₹3.2 lakh crore to the government’s annual wage bill
Key Takeaways
- Approval: January 2025
- Fitment Factor: 1.8 – 2.46
- Salary Hike Range: 14% – 34% (median)
- Beneficiaries: 1 crore+ employees & pensioners
- Implementation: 2026 or early 2027