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The Centre has given the green light to the 8th Pay Commission, which is set to revise pay and pensions for over 1 crore employees and retirees.

The revised pay structure is expected to come into force from January 1, 2026.

One of the most awaited changes under the new commission is the increase in the fitment factor - a key multiplier used to recalculate pay scales. The 7th Pay Commission had fixed it at 2.57, but early indications suggest the 8th Pay Commission may raise it to 2.86. If approved, this would result in a minimum basic salary hike from Rs 18,000 to approximately Rs 51,480 and a minimum pension increase from Rs 9,000 to around Rs 25,740.

Changes Expected in Allowances and Deductions

Along with basic salary revisions, House Rent Allowance (HRA) and Travel Allowance (TA) are also expected to be updated based on employee locations and job requirements. This means total monthly earnings may vary for employees even at the same pay grade, depending on their posting.

The upcoming salary revisions will also impact contributions to the National Pension System (NPS) and Central Government Health Scheme (CGHS). Presently, government employees contribute 10% of basic pay and DA towards NPS, while the government adds 14%. The expected rise in salaries would result in higher monthly contributions under both schemes. Similarly, CGHS charges-linked to salary slabs-will also rise in line with the new pay scales.

Projected Hikes Across Pay Grades (Estimates)

• Grade 2000 (Level 3)
  Basic Salary - Rs 57,456
  Gross - Rs 74,845 | Net Take-Home - Rs 68,849
• Grade 4200 (Level 6)
  Basic Salary - Rs 93,708
  Gross - Rs 1,19,798 | Net - Rs 1,09,977
• Grade 5400 (Level 9)
  Basic - Rs 1,40,220
  Gross - Rs 1,81,073 | Net - Rs 1,66,401
• Grade 6600 (Level 11)
  Basic - Rs 1,84,452
  Gross - Rs 2,35,920 | Net - Rs 2,16,825

These projections are based on preliminary estimates and may change after the commission’s final recommendations and subsequent government approval.

As the 8th Pay Commission prepares to begin its work, government employees and retirees are closely watching for updates. The commission aims to bring salaries and pensions in line with present-day economic conditions, ensuring fair and sustainable compensation structures for public sector workers.