The 8th Pay Commission has been approved by the government. It will start from January 1, 2026. This decision will bring changes to pay, pension, and allowances for more than 50 lakh Central Government employees and about 65 lakh pensioners.
The new rules will mainly change the basic salary structure. This will happen through the fitment factor, which is used to multiply the current salary.
Expected Salary Increases Between Grade Levels 1-7
Employees in Grade Pay or Pay Matrix Levels 1 to 7 will see big changes in their salary.
For example, the current minimum basic pay in Level 1 is about ₹18,000. Under the 8th Pay Commission, this could rise to around ₹51,480 if the fitment factor is taken as 2.86.
An employee in Level 4, whose current pay is about ₹25,500, may get a new basic salary of around ₹60,000–₹70,000 or more.
Here is a simple table to understand:
| Pay Matrix Level | Current Basic Pay (7th CPC) | Expected Basic Pay (8th CPC) |
| Level 1 | ₹18,000 | ~₹51,480 |
| Level 4 | ₹25,500 | ₹60,000 – ₹70,000+ |
Note: These amounts show only the revised basic salary. Other allowances like DA (Dearness Allowance) and HRA (House Rent Allowance) will also increase, since they depend on the new basic pay.
Fitment Factor and Salary Structure
The fitment factor decides the rise in salary.
In the 7th Pay Commission, the fitment factor was 2.57. It increased the minimum basic pay from ₹7,000 to ₹18,000.
For the 8th Pay Commission, the expected fitment factor may be between 2.5 and 2.86. Some reports also say it could be as low as 1.83.
Once the new factor is fixed, all allowances like DA will be revised based on the updated basic salary.
When Will Employees Get the Benefits?
Employees and pensioners are expected to see the changes from January 1, 2026.
Before that, the Terms of Reference (ToR) will be prepared. Then discussions will happen on the fitment factor and the new pay matrix.
After the final approval and budget decisions, the revised pay will apply to salaries starting from January 2026.
What Employees Should Remember
The rise in salary will depend on the Pay Matrix level of each employee.
Employees in Level 1 to 7 may see the biggest percentage rise, since their basic pay is lower compared to higher levels.
Also, after DA is reset, the final benefit may look a bit different. Employees should keep checking updates for their own level to know the exact revised pay.
Conclusion
The 8th Pay Commission will bring a big change for government employees and pensioners. Salaries and pensions will increase with the new fitment factor. Levels 1 to 7 are expected to see major jumps in pay. Employees should wait for official announcements to know their exact revised salary and allowances.
Disclaimer
This article is for general information only. The details about salary, allowances, and fitment factor are based on reports and expectations. Final figures may change once the government issues official notifications. Employees should check official government sources before making any financial decisions.
FAQs
What is the 8th Pay Commission?
It is a new system to revise pay, pension, and allowances for central government staff.
When will it start?
It will start from January 1, 2026.
What is the fitment factor?
It is a number used to multiply current basic pay to decide new salary.
Who will benefit?
More than 50 lakh employees and about 65 lakh pensioners.
Will DA and HRA also change?
Yes, they will be revised on the new basic pay.