New Delhi. These days, there is only talk of the Eighth Pay Commission in government offices across the country. Be it over a cup of tea or gossiping during lunch break, there is only one question on the lips of central employees everywhere, “Brother, how much is your salary going to increase in the 8th Pay Commission?” This question is also reasonable, because in this era of inflation, everyone wants their income to increase. Overall, 50.14 lakh central government employees and about 69 lakh pensioners are currently looking towards the government with great hope. The Eighth Pay Commission formed under the leadership of retired Justice Ranjana Desai is now engaged in its work with full vigor. This is a long and detailed process.
This commission, headed by Justice Ranjana Desai, has been working with due diligence since its formation. The job of the Commission is not just to increase the salary, but they also have to see what effect it will have on the country’s economy. The Commission has to give its opinion on the basic pay structure, different types of allowances, pension rules and benefits after retirement as well as the conditions of service. The government has given this commission 18 months time to submit its report.
How much will the fitment factor increase?
Fitment factor plays an important role in calculating the increase in salary and pension. Fitment factor is that magic number or multiplier by which the existing basic pay of the employee is multiplied, so that the new salary can be decided. Until the Union Cabinet gives its approval to the recommendations of the Commission, this factor is not considered final. Many reports say that the fitment factor for the 8th Pay Commission could be in the range of 1.86 to 2.57. Understand it this way, if this factor remains low then the increase in salary will be normal, but if it goes near 2.57, then it is certain that the employees will be in trouble.
When will the Eighth Pay Commission be implemented?
The most troubling question is when will “good days” come? Let us understand the game of dates. The ‘Terms of Reference’ (ToR) for the 8th Central Pay Commission were notified on October 28, 2025. The commission has got 18 months to submit its report. Accordingly, the commission will submit its report to the government by April 2027.
After receiving the report, the government does not implement it immediately. The Finance Ministry and other departments of the government study that report, make some changes in it and then it gets approval from the Cabinet. This process usually takes 6 months after the report is submitted. So if we look at it practically, the new salary structure is likely to be implemented in late 2027 or early 2028.
What is the government’s stand on the Eighth Pay Commission?
While answering a question in the Lok Sabha on December 8, 2025, he made it clear that the date of implementation of the 8th Pay Commission has not been decided yet. He said that the commission has been constituted and its terms have been stated through the resolution dated November 3, 2025. The Minister also assured that whatever recommendations of the 8th Pay Commission will be accepted by the government, full arrangements of funds will be made to implement them. He also clarified that no proposal to implement it from January 1, 2026 is currently under consideration. Which means that the process will continue as per its scheduled time (2027-28).
How much money will come into the employee’s pocket?
Now let’s come to the most important thing. Ambit Capital has estimated in one of its reports that the fitment factor will be between 1.83 to 2.46. If this happens, the minimum salary of central employees, which is currently Rs 18,000, may increase to between Rs 32,940 and Rs 44,280. Even if the fitment factor remains 1.83, the basic salary will almost double to Rs 32,940. And if luck favors you and the factor becomes 2.46, then it will become Rs 44,280.
The report estimates that an increase of at least 14% in the actual salary of employees (which includes basic pay and DA) is certain. Maximum this increase can go up to 54%. However, the figure of 54% seems a little more optimistic. It would be economically very challenging for the government to make such a huge increase, as it could increase the fiscal deficit. If the government is in a mood to increase consumption in elections or in the economy, then it can show big heart. This happened at the time of the Sixth Pay Commission.
How much will the salary increase according to grade pay?
By calculating two fitment factors 1.92 (normal increase) and 2.57 (bumper increase) we find out how much the salary of the employees will increase after the implementation of the Eighth Pay Commission. House Rent Allowance (HRA), Transport Allowance (TA), and NPS deductions are also included in this calculation. Here HRA is considered to be 24% of basic (for big cities) and NPS is deducted at 10% of basic.
For those with grade pay 1900: If you are on 1900 grade pay and fitment factor is fixed at 1.92, then your basic salary will be Rs 54,528. If you add HRA of Rs 13,086 and TA of Rs 3,600, your gross salary will be Rs 71,215. After deducting NPS and CGHS from this, your net salary will be around Rs 65,512. At the same time, if the fitment factor becomes 2.57, then the scenario will change. Then your basic will be Rs 72,988 and after putting everything together you will get approximately Rs 86,556.
Grade Pay 2400 and 4600: For employees with Grade Pay 2400, the in-hand salary at 1.92 factor will be around Rs 86,743, while at 2.57 factor it can cross Rs 1 lakh and reach Rs 1,14,975. Similarly, for officers with Grade Pay 4600, the net salary is estimated to be Rs 1,31,213 at 1.92 factor and Rs 1,74,636 at 2.57 factor.
