The Union Cabinet has approved the 8th Central Pay Commission, which will bring substantial salary hikes for central government employees, defense personnel, and pensioners. The new pay structure is expected to be implemented from January 1, 2026.
Key Changes:
- Increase in Minimum Basic Salary: The minimum basic salary will jump from ₹18,000 to over ₹40,000 per month.
- Fitment Factor: A significant increase is expected, with the fitment factor ranging from 2.6 to 2.85, leading to an average salary boost of 25-30%.
- Comparison with Previous Commissions:
- In the 7th Pay Commission (2016), the minimum salary was ₹18,000, with a fitment factor of 2.57, resulting in a 23.55% salary increase.
- The 6th Pay Commission (2006) set the minimum salary at ₹7,000, with a lower fitment factor of 1.86.
- Implementation Timeline: The new pay structure will take effect from January 1, 2026, giving employees time to prepare for the changes.
Allowances:
Along with the basic salary hike, employees will also see revisions in allowances like Dearness Allowance (DA), House Rent Allowance (HRA), and Travel Allowance (TA), further enhancing their take-home salary.
In conclusion, the 8th Pay Commission is set to improve the financial status of central government employees and pensioners, addressing inflation concerns and reducing the pay disparity between the public and private sectors. The changes will be officially implemented starting January 1, 2026.
