The cabinet ministers have approved the 8th pay commission, which will be implemented from 1st January 2026 and will be applicable to all central employees. With the advent of this pay commission, many significant changes can be seen in the salary structure, pension, and allowance.
This pay commission will help in evolving the central government employees, economic shifts, and managing inflation. This commission is helpful for working and retired employees, which mandates include pension, compensation, and welfare measures. One of the main highlights is the proposed Fitment Factor of 2.28, which could raise the minimum salary by 34.1% . The Dearness Allowance (DA) is expected to touch 70% by January 2026 and will be merged into the basic salary for revised pay calculations.
Approximately 48.62 lakh employees and 67.85 lakh pensioners are going to get direct benefits from the 8th Pay Commission, with an estimated salary revision ranging from Rs 20,000 to Rs 25,000. For the latest updates, you can visit the official website at [https://dopt.gov.in](https://dopt.gov.in). The minimum pension is also likely to see a major hike, with estimates suggesting it could go up to ₹20,500.
Here’s a simple step-by-step guide to help you calculate your estimated gross salary under the 8th Pay Commission:
Step 1: Check your basic pay in the 7th Pay Commission
Step 2: Check revised Basic Pay:
Revised Basic Pay Current basic payX Fitment Factor (3.0)
Step 3: Calculate Dearness Allowance (DA): DA is a percentage of your revised basic pay.
DA = Revised Basic Pay × 0.50
Step 4: Calculate House Rent Allowance (HRA):
HRA is a percentage of your revised basic pay and varies depending on your city:
* Metro cities: 27%
* Tier-2 cities: 20%
* Tier-3 cities: 10%
HRA = Revised Basic Pay x City Percentage
Step 5: Add Travel Allowance (TA):
Your TA depends on your employee level and city classification. (Consult official guidelines for your specific TA amount.)
Step 6: Calculate Gross Salary:
Gross Salary = Revised Basic Pay + DA + HRA + TA – Standard Deduction
Fitment factor of the 8th Pay Commission
In the history of the upgradation of pay commissions, multiple changes have been seen in the pay, fitment factors, and minimum basic salary.
During the 4th pay commission, it was seen 27.6% hike with a minimum basic salary of 750 Rs.
During the 5th pay commission, it was seen 31% hike with a minimum basic salary of 2,550 Rs.
During the 6th Pay Commission, the fitment factor was introduced with 1.86, with a 54% hike, with the minimum basic salary of Rs 7,000.
The 7th pay commission broughta fitment factor of 2.57 and a hike of 14.29% and the minimum basic salary of Rs 18,000
The 8th Pay Commission is expected to be a 20% hike with a fitment factor of 3.00 and a minimum basic salary of Rs 21,600.