8th Pay Commission Likely From January 2026: Salary and Pension Hike Expected for Central Govt Employees; Check Details
By Lokmat English Desk | Updated: June 19, 2025 17:19 IST2025-06-19T17:17:52+5:302025-06-19T17:19:18+5:30
There’s good news for government employees and pensioners. Earlier this year, the central government gave the green signal to ...
8th Pay Commission Likely From January 2026: Salary and Pension Hike Expected for Central Govt Employees; Check Details
There’s good news for government employees and pensioners. Earlier this year, the central government gave the green signal to the 8th Pay Commission, which is likely to be implemented from 1 January 2026. This development is expected to significantly increase the salaries and pensions of over 10 million central government employees and pensioners across the country. The 8th Pay Commission is expected to significantly improve salary and pension structures. Naturally, central government employees and pensioners are eager to know how much their salary or pension will rise and why these changes are considered crucial.
What Makes the 8th Pay Commission Special?
One of the most important aspects of this commission is the fitment factor, which is used to calculate revised basic pay and pension. In the 7th Pay Commission, this factor was 2.57, but in the upcoming commission, it could be increased to 2.86. The current minimum basic salary of Rs 18,000 could rise to approximately Rs 51,480. Similarly, the minimum pension of Rs 9,000 could increase to around Rs 25,740. This will result in a significant hike in both salary and pension, offering major financial relief and benefits to employees.
Estimated Salary at Different Pay Levels (As Per 8th Pay Commission Projections)
| Pay Level | Grade Pay | Basic Salary | Total Salary | In-Hand Salary (After Deductions) |
|---|---|---|---|---|
| Level 3 | Rs 2,000 | Rs 57,456 | Rs 74,845 | Rs 68,849 |
| Level 6 | Rs 4,200 | Rs 93,708 | Rs 1,19,798 | Rs 1,09,977 |
| Level 9 | Rs 5,400 | Rs 1,40,220 | Rs 1,81,073 | Rs 1,66,401 |
| Level 11 | Rs 6,600 | Rs 1,84,452 | Rs 2,35,920 | Rs 2,16,825 |
In addition to basic pay, allowances like House Rent Allowance (HRA) and Travel Allowance (TA) will also increase. These components vary depending on the employee’s posting location and nature of travel, meaning total salary can differ even among employees in the same grade.
Also Read | 8th Pay Commission: Employee Unions Demand 2.86 Fitment Factor; Will Salaries See a Real Hike This Time?.
Impact on NPS and CGHS Contributions
National Pension System (NPS): Currently, employees contribute 10% of their basic pay + DA, while the government contributes 14%. With the rise in basic pay, the contribution amount will also increase accordingly.
Central Government Health Scheme (CGHS): CGHS fees are linked to the salary slab, so higher basic pay will also lead to an increase in monthly CGHS deductions. The 8th Pay Commission will not only enhance take-home salaries, but also impact retirement planning, home loan EMIs, insurance premiums, and tax-saving strategies. This pay revision is expected to bring much-needed financial relief and stability to lakhs of central government employees and their families.
Open in app