8th Pay Commission News: salary will be hike in between 20% and 35% – Government Releases Key Updates

sancharnet

February 27, 2025

8th Pay Commission News

8th Pay Commission Latest News: 8th Pay Commission which has already proposed is scheduled for implementation in January 2026. The government is all set to make significant changes in the salary structures along with allowances and pensions for central government workers and retirees. The proposed fitment factor is 2.86.  Respective salary will be hike in between 20% and 35% through these adjustments. One can improve the financial security and job satisfaction while tackling inflation and ensuring fair pay. As talks about the 8th Pay Commission progress, government employees are keen to learn how these updates may impact their financial well-being.

Although there has been 8th Pay Commission no official announcement yet but the excitement surrounding the commission’s possible recommendations is growing. The Modi government has approved the establishment of this new pay panel, which is anticipated to provide its recommendations on salary and pension changes for central government employees in the near future. The final report from the 8th Pay Commission will be presented to the central government. And as a resultant it will make the final decisions on how to apply the panel’s suggestions along with hopes for these changes to take effect starting January 1, 2026.

8th Pay Commission Key Points

First of all the implementation is set to begin on January 1, 2026. 

The fitment factor is going to increase to 2.86 which will lead to higher salaries at all levels. 

Approximately 5 million employees and 6.5 million pensioners will benefit. 

Through this fitment factor enhancement the salary increases are expected to range from 20% to 35%, with Level 1 pay going from ₹18,000 to ₹51,480. 

Inflation will regulate some changes in the Post-retirement benefits and allowances.

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An overview of 8 Pay Commission

  • Let us discuss about what is 8th pay commission. This upcoming Commission is a proposed plan in India. It aims to update the salaries along with allowances and pension benefits for all Central Government employees. The panel of 8th pay commission is a set up by the Indian government.
  • The goal of the commission is to address the rising cost of living and adjust the pay of Central Government employees to better match current economic conditions.
  • Prime Minister Narendra Modi approved the creation of the 8th Pay Commission on 16.01.2025.
  • This decision impacts around 5 million central government employees and 6.5 million pensioners.

Fitment factor and its effects

  • Relaying up on fitment factor means adjusting salaries under a new pay commission. 
  • The upcoming salary will be decided by multiplying the basic salary in to fitment factor.
  • This method ensures a consistent salary increase for all employees. 
  • It also helps maintain proportional pay structures across different levels. 
  • Understanding fitment is crucial for grasping salary adjustments in the pay commission. 
  • This change could increase the minimum basic pay from Rs 18000.00 to Rs 51480.00. you will notice a 186% rise from the current minimum pay.
  • Experts suggest that the actual salary increase may be lower due to deductions and adjustments. 
  • The following discussion will explore projections based on the fitment factor of 2.86. 

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Effects on salary after and before of the 8th pay commission

Level wise Pay MatrixBasic Pay is (Current)Expected Revised Basic Pay will beIncrease (Approximately)
Level- 1Rs.18000Rs.51480Rs.33480
Level -2Rs.19900Rs.56914Rs.37014
Level- 3Rs.21700Rs.62062Rs.40362
Level- 4Rs.25500Rs.72930Rs.47430
Level- 5Rs.29200Rs.83512Rs.54312
Level- 6Rs.35400Rs.101244Rs.65844
Level- 7Rs.44900Rs.128414Rs.83514
Level -8Rs.47600Rs.136136Rs.88536
Level- 9Rs.53100Rs.151866Rs.98766
Level- 10Rs.56100Rs.160446Rs.104346

 8th Pay Commission Salary Structure and Job responsibilities

Pay LevelDesignationsKey Responsibilities
Level- 1Peons /Attendants/MTS (Multi-Tasking Staff)To support tasks in various government departments.
Level -2Lower Division Clerks (LDCs)Mostly they are into clerical duties and routine administrative work.
Level- 3Constables/ Skilled Trades StaffThese personnel are serving in police defense or other public services ensuring smooth operations.
Level -4Stenographers (Grade D) /Junior ClerksBasically stenographers are the transcribers, then Translator, documentation and clerical tasks.
Level -5Senior Clerks Assistants, Technical StaffHigher-level administrative or technical support across various departments.
Level -6Inspectors/ Sub-Inspectors/Junior Engineers (JEs)These personnel are responsible for managing operational tasks and engineering responsibilities.
Level- 7Superintendents/Section Officers /Assistant Engineers (AEs)Section officers are there to review the project management system and complex administrative responsibilities.
Level- 8Senior Section Officers /Assistant/ Audit OfficersAuditing along with overseeing higher administrative functions.
Level -9Deputy Superintendents of Police (DSPs)/ Accounts OfficersResponsible for operational management or financial oversight.
Level -10Group A Officers (Assistant Commissioners /IAS/IPS/IFS Officers)Strategic planning, policy making, maintaining balance between public and field officers etc

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Advantages of 8th Pay Commission

Advantages of 8TH Pay Commission: What could the Government Employees can anticipate? 

  • The 8th Pay Commission’s set up is all happened to improve the salary system for central government workers. 
  • Employees can expect a salary boost ranging from 20% to 35% by increasing their basic pay significantly. 
  • A new pay matrix will be introduced which is clarifying salary ranges and aligning them with job responsibilities. 
  • Regular updates including Dearness Allowance (DA) will help salaried person to keep pace with inflation. 
  • The pension system is likely to see enhancements by benefiting around 65 lakh pensioners. 
  • Adjustments will also be made to allowances and benefits for retired employees. 
  • The commission may focus on larger raises for lower-income workers to ensure fair pay distribution. 
  • The new salary framework aims to provide better financial security for all employees. 
  • Improved benefits and flexibility are expected to enhance job satisfaction and performance in government roles. 
  • The 8th Pay Commission is likely to follow the Aykroyd formula similar to the 7th Pay Commission.
  • This formula will help determine salary and pension increases for central government employees.
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