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The 8th Pay Commission for about one crore central employees of the country is not less than a big gift. The government approved this new pay commission in January 2025, and now its preparations are in full swing. Employees’ eyes are now on increased salary and new allowances. Let us understand this news in detail and know what the 8th Pay Commission is bringing for the employees.

Formation of 8th Pay Commission: What is the latest update?

The central government has started the process of forming the 8th Pay Commission. According to sources, a chairman and two members may be appointed for the Commission this month. This commission will create a new salary and composition of permissions for Central Employees and Pensioners. Employees hope that their increased salary will be implemented from January 2026. This news has added enthusiasm among the employees, as this commission promises to further strengthen their economic condition.

How much will the expectation of increase in salary?

The formula for salary hike under the 8th Pay Commission has not yet been officially declared. However, experts believe that the fitment factor will be used in salary determination, which can be between 2.28 and 2.86. This means that the total salary of employees can increase by 40 to 50 percent. For example, if an employee has an existing basic salary of Rs 20,000, his salary can range from Rs 28,000 to 30,000 when the fitment factor is implemented. This increase will be a big relief for the employees, especially in the era of rising inflation.

There will also be an increase in allowances

The 8th Pay Commission is not limited to salary hike only. Under this, many allowances are also expected to increase. Apart from dearness allowance, house rent allowance (HRA), travel allowance, location-special allowances, and special allowances can also increase. Apart from this, employees will also get the benefit of Leave Travel Allowance (LTA). These allowances will further strengthen the income of the employees. In particular, HRA will be a major relief for employees living in large cities, as the cost of rent is continuously increasing.

How will salary and allowances be calculated?

Understand the calculation of salary and allowances on the basis of 7th Pay Commission, the minimum salary was Rs 18,000 per month. It contained 30% HRA, Rs 400 travel allowance, and dearness allowance. In addition, employees living in A1/A category cities had additional benefits. For example, education allowance of Rs 1,500 per month was also included for two children. In this way, the salary under the 7th Pay Commission reached Rs 20,870. This structure in the 8th Pay Commission will be better, which will increase the total income of employees significantly.

What does it matter to employees?

The 8th Pay Commission has brought a new hope for central employees. This will not only strengthen their economic condition, but will also improve their standard of living. This commission will become a strong support for employees in rising inflation and changing economic conditions. Employees’ organizations are also demanding from the government that the increase in salary and allowances should be done keeping in mind the needs of the employees.