Complete Guide to 8th Pay Commission 2026: Salary Hike, Fitment Factor, Allowances & Salary Calculator

On January 16, 2025, the Union Cabinet approved the 8th Pay Commission to revise central government employees’ salaries. The formation of the commission promises to hike public sector workers’ income. 

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Implementation Date & Updates

The 8th Pay Commission is set to be implemented from January 1, 2026, but recent 8th pay commission latest news indicates possible delays due to pending approvals and appointment of commission members. If delayed, central government 8th pay commission employees retiring in January 2026 or later may receive arrears only after implementation, consistent with previous pay commission practices.

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Sample pay matrix adjustments under the 8th pay commission salary structure:

This 8th pay commission employees salary hike affects the 8th pay commission salary slab and overall pay scale revisions.

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8th Pay Commission Salary Hike and Fitment Factor

The 8th pay commission salary hike is projected with a fitment factor ranging from 1.92 to 2.86, representing approximately a 30% salary increase across various levels. This 8th pay commission fitment factor will determine the new pay matrix for employees.

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Allowances & Benefits under the 8th Pay Commission

Key components in the 8th pay commission salary pay matrix include updated allowances:

• House Rent Allowance (HRA) is revised based on city classification (X, Y, Z cities), applicable once Dearness Allowance crosses 25%:
  • X Cities: 30%
  • Y Cities: 20%
  • Z Cities: 10%
• Transport Allowance (TA) is adjusted by pay level and city type, with higher TA for senior employees and metropolitan cities.
• National Pension System (NPS) contributions continue at 10% from employees and 14% from the government.
• Commuted Pension Restoration period proposed to reduce from 15 to 12 years for pensioners, benefiting retired central government 8th pay commission employees.

These updates form part of the 8th pay commission salary structure to improve overall employee benefits.

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Use the 8th Pay Commission Salary Calculator for Projections

For personalized estimates of salary revisions, deductions, and benefits, the 8th pay commission salary calculator is available on platforms like GFR:

• It calculates revised salaries based on the 8th pay commission pay matrix.
• Incorporates income tax deductions as per the latest tax regime (FY 2025-26).
• Helps government employees plan finances with accurate projections.

Explore the 8th pay commission salary calculator here:

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What is the 8th Pay Commission? 

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The 8th Pay Commission is formed to revise the salaries, pensions, and allowances of central government employees and retirees. The commission will increase salaries and adjust the dearness allowances of government employees against inflation. 

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Salary Hike

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Although there is news about salary hikes under the 8th Pay Commission, there’s no defined percentage or amount announced by the cabinet. The salaries of the employees is said to increase according to the fitment factor. 

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What is the Fitment Factor?

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The fitment factor will dictate how the salaries, pensions, and allowances will be adjusted under the 8th Pay Commission. It is a method to calculate the salaries and pensions of government officials. 

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The fitment factor accounts for various factors such as inflation, government budget, employee requirements, and more.

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Who will benefit from the 8th Pay Commission?

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As per the Union Cabinet, around 50 lakh central government employees, including defence personnel, will be the beneficiaries of the 8th Pay Commission.

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After the revision, nearly 65 lakh retired employees will also benefit from the pay commission.

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When will the 8th Pay Commission be Enforced?

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According to Union Minister Ashwini Vaishnaw, the 8th Pay Commission will likely come into force by 2026.

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When was the Previous Pay Commission Constituted?

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The Pay Commission is constituted once every ten years. So far, the government has established seven pay commissions since 1946. 

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Currently, the recommendations of the 7th Pay Commission are in action which was led by the former late Prime Minister Dr. Manmohan Singh. The 7th Pay Commission came into force on January 1, 2016. 

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What is the Role of the 8th Pay Commission?

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The central government constitutes the pay commission to review and revise the salary structure of government employees. 

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The commission takes several factors into consideration such as inflation, the economic state of the country, and other relevant factors while revising the pay structure. 

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It also considers other factors such as perks, allowances, bonuses, etc. of government employees for revision. 

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