8th Pay Commission - Expectations, News and Updates

Current Status: The Indian Government has approved the 8th Pay Commission which will revise the salaries and pension of central government employees and is likely to be implemented next year.

Potential Implementation: If established, the 8th Pay Commission could benefit approximately 48.62 lakh CGEs and 67.85 lakh pensioners, with potential basic salary increase will be from Rs.18,000 to Rs.51,480 and the pension will be hiked to Rs.25,740 up to Rs.9000.

Timeline: Implementation date of the 8th Pay Commission is yet to be announced which will probably be January 2026, following the usual 10-year interval between Pay Commissions. However, this is purely speculative and has not been confirmed by the government.

8th Pay Commission Overview

Here is the overview of the 8th Pay Commission:

Salary and Pension Calculation as per 8th Pay Commission

Given below is the process how the salary and pension will be calculated as per 8th Pay Commission:

1. The fitment factor is 2.86% and the minimum salary (Level 1) will be Rs.34,560, increased from Rs.18,000.

1. The maximum salary (Level 18) will be Rs.4.8 lakh, increased from Rs.2.5 lakh.

1. Changes will be made under the UPS for pension calculations.

1. As per the increase in 20% DA and 50% pension formula, which will come into effect by 2029, Level 18 employees may get a pension of Rs.2,88,000 and Level 1 employees may get a pension of Rs.20,736.

8th CPC Salary Increase

For all Central Government employees, the 8th Pay Commission is expected to suggest a revision in the basic salary, which may fall between approximately 25% to 35%. The 8th Pay Commission will also suggest a significant increment in the retirement benefits of up to 30%.

8th Pay Commission Fitment Factor

As per reports, the fitment factor that will likely be used to prepare the pay matrix by the 8th Pay Commission is 2.86. Therefore, the basic salary under Level 1 will be increased to Rs.51,480. The maximum basic salary may be Rs.1.60 lakh for government employees.

1. Level 1: It includes attendants, peons, and support staff and the basic pay is expected to be revised to Rs.51,480 from Rs.8,000, which is an increase of Rs.33,480. 

1. Level 2: It includes lower division clerks, and the basic pay is raised to Rs.56,914 from Rs.19,900, which is up by Rs.37,014.

1. Level 3: It includes constables and skilled staff in the police or public services who get a basic pay of Rs.21,700 currently and this is expected to be raised to Rs.62,062, making a total increase of Rs.40,362.

1. Level 4: It includes Grade D stenographers and junior clerks and is expected to receive a basic pay of Rs.72,930 marking a significant rise of Rs.47,430 from Rs.25,500 basic pay now.

1. Level 5: It includes the senior clerks and higher-level technical staff who get a basic pay of Rs.29,200 and will revise a raise of Rs.83,512, signifying an increase of Rs.54,312.

1. Level 6: It posts of inspectors and sub-inspectors will receive a revised basic pay of Rs.1,01,244 signifying an increase of Rs.65,844.

1. Level 7: It includes section officers, superintendents, and assistant engineers may get their basic pay raised to Rs.1,28,414 from Rs.44,900, an increase of Rs.83,514.

1. Level 8: Senior section officers and assistant audit officers with Rs.47,600 basic pay will receive an increased basic pay of Rs.1,36,136, a rise of Rs.88,536.

1. Level 9: Deputy Superintendents of Police and accounts officers with a basic pay of Rs.53,100 may receive an increased basic pay of Rs.1,51,866, a raise of Rs.98,766.

1. Level 10: It includes Group A officers like entry-level officers in the civil services who receive a basic pay of Rs.56,100 who may receive a revised basic pay raised to Rs.1,60,446, which is an increase of Rs.1,04,346.

The factor that converts the old basic pay to the new basic pay is the Fitment Factor, which is a number that compares pre-revised basic pay to revised basic pay. The following is the fitment factor and other details of 4th Pay Commission to 8th Pay Commission in India:

Expected 8th Pay Commission Minimum Basic Salary Table

The following is the list of minimum basic salary of expected 8th Pay Commission:

Benefits of 8th Pay Commission Implementation

For Central Government Employees:

1. Increased Salaries: The most anticipated benefit is a hike in basic salary, estimated between 25% and 35%. This can improve living standards and provide greater financial security.

1. Enhanced Allowances: To account for inflation and shifting living expenditures, the commission may revise several benefits, including the Dearness Allowance (DA), House Rent Allowance (HRA), and Transport Allowance (TA).

1. Improved Retirement Benefits: An increase in pension could offer better financial security after retirement, with estimates suggesting up to a 30% increase.

1. Boosted Morale and Motivation: Taking care of financial issues may increase worker satisfaction and even boost output.

For the Indian Economy: 

1. Increased Spending: Government workers are likely to spend more when they have greater disposable income, which will boost demand for products and services and boost the economy.

1. Tax Revenue Growth: Increased salary may result in increased tax income for the government.

1. Reduced Financial Stress: Employee financial well-being can lessen the strain on social welfare programs and improve societal stability.

Will the 8th Pay Commission Replace the 7th CPC?

Yes, the 8th Central Pay Commission will soon replace the 7th Central Pay Commission by revising the pay scales, allowances, and pension benefits every ten years for all Central government employees and pensioners.

The 7th CPC was established in 2014 and took effect on 1 January 2016. While the 8th CPC will be established in 2024 and will be implemented on 1 January 2026 by bringing about a change in pay scales among the government employees and boosting the retirement benefits by 25%.