The 8th Pay Commission may take until 2028 for full implementation, though its benefits will be available from January 1, 2026. While the Union Cabinet approved the formation of the commission in January, an official notification has not yet been issued, the terms of reference are pending, and the list of commission members has not been released.
The new pay commission will impact over 5 million central government employees and approximately 6.5 million pensioners. The basic salary for Level 1 central government employees could rise from ₹18,000 to ₹44,000, with the commission potentially applying a fitment factor of 2.46.
How Much Could Salaries Increase?
The increase in basic salary depends on the fitment factor and the merger of Dearness Allowance (DA). In the 7th Pay Commission, the fitment factor was 2.57; it is expected to be 2.46 in the 8th.
DA resets to zero with every new Pay Commission because the revised basic salary already accounts for inflation. DA then gradually increases again. Currently, DA is 55% of basic pay, so removing it temporarily may make the total salary increase appear smaller.
Example (Level 6 employee):
Current 7th Pay Commission Salary:
- Basic Pay: ₹35,400
- DA (55%): ₹19,470
- HRA (Metro, 27%): ₹9,558
- Total Salary: ₹64,428
With 8th Pay Commission (fitment factor 2.46):
- New Basic Pay: ₹35,400 × 2.46 = ₹87,084
- DA: 0% (reset)
- HRA (27% of basic): ₹23,513
- Total Salary: ₹1,10,597
Fitment Factor Explained:
The fitment factor is a multiplier applied to the current basic salary to determine the new basic pay, taking into account inflation and cost of living.
Why Will Implementation Take Until 2028?
Each Pay Commission typically requires 2–3 years from formation to implementation. Even if the 8th Pay Commission is formed soon, time is needed to prepare the report, obtain government approval, and finalize recommendations.
Full implementation by 2028 does not mean employees will only receive benefits then. The effective date is set for January 1, 2026, meaning salary and pension increases will be calculated from that date.
Timeline of Previous Pay Commissions
- 5th Pay Commission: Constituted in April 1994; report submitted January 1997; recommendations effective January 1, 1996. Original 51 pay scales reduced to 34.
- 6th Pay Commission: Constituted October 20, 2006; report submitted March 2008; approved August 2008; effective January 1, 2006.
- 7th Pay Commission: Constituted February 2014; terms of reference finalized March 2014; report submitted November 2015; approved June 2016; effective January 1, 2016.