8th Pay Commission India: Salary Hike, Fitment Factor & New Pay Matrix 2026

On: December 28, 2025 5:01 PM
8th Pay Commission

KEY HIGHLIGHTS

  • 8th Pay Commission set to roll out from 1 January 2026.
  • Minimum basic pay may jump from ₹18,000 to ₹41,000.
  • Fitment factor, DA merge, and new Pay Matrix to sharply impact salaries.

Salary calculator 8th pay commission: Central government employees have been waiting for this one big update — 8th Pay Commission is now officially in motion, and the expected salary hike is looking pretty solid. 8th Pay Commission Salary Hike

The commission’s recommendations will kick in from 1 January 2026, and early estimates suggest a big jump in basic pay, allowances, and pension. Let’s break down what really matters for you.

Summary Table (Quick Look)

CategoryExpected Update (8th CPC)
Implementation Date1 January 2026
Expected Fitment Factor2.28 (some estimates peg 3.0 for calculations)
Minimum Basic PayFrom ₹18,000 to ₹41,000
DA Projection70% by Jan 2026 (will be merged)
Beneficiaries48.62 lakh employees + 67.85 lakh pensioners
Pension HikeMinimum pension may rise from ₹9,000 to ₹20,500+
Pay MatrixAll levels revised with higher entry pay

What Has the Government Announced?

The Union Cabinet, chaired by PM Narendra Modi, has cleared the Terms of Reference for the 8th Central Pay Commission.

The commission will review:

  • Pay structure
  • Pensions
  • Allowances
  • Service conditions

All this while balancing economic conditions and fiscal health. The report will be submitted within 18 months.

The 7th CPC closes on 31 December 2025, completing the 10-year cycle similar to previous commissions.

The Big Buzz: Fitment Factor & Salary Hike

One of the strongest indicators so far is the proposed Fitment Factor of 2.28, which will directly push up basic salaries.

Some internal calculations also suggest a 3.0 factor might be used for estimation tools.

Why does this matter?
Because this one number decides your new base salary — the starting point for HRA, DA, TA and more.

Minimum wage projection:
From ₹18,000 → ₹41,000
That’s a 34%+ jump, depending on your level.

Expected Benefits for Employees

Around 48.62 lakh central employees stand to benefit.

The new salary structure will include:

  • Revised Basic Pay
  • DA reset to zero, then recalculated
  • Higher HRA slabs
  • Updated Travel Allowances

Once DA touches 50%, allowances are usually revised — meaning long-term benefits.

8th Pay Commission Pension Update

Pensioners also get a solid boost here.

Minimum pension (₹9,000) under 7th CPC is likely to rise to ₹20,500–₹25,740.
Dearness Relief (DR) will be reset after the revised pension structure is applied.

The commission may also review:

  • NPS structure
  • Minimum guaranteed pension (expected: ₹10,000+)
  • Faster disbursement systems

For many retirees, this is a massive relief in the current cost-of-living environment.

8th CPC Salary Structure: What Changes?

Basic Pay

Calculated using the revised fitment factor.

Dearness Allowance

DA will restart from zero and be calculated on new basic pay.

HRA

Expected to follow the standard structure:

  • 27% for metro
  • 20% for Tier-2 cities
  • 10% for Tier-3 cities

TA

Will depend on level and city classification.

8th CPC Salary Calculator (Simple Guide)

Here’s the easiest way to estimate your new salary using the expected 3.0 fitment factor.

Step 1: Note your current basic pay.
Step 2: Multiply by 3.0
Revised Basic Pay

Step 3: Add expected DA (assume 50%)
DA = Revised Basic Pay × 0.50

Step 4: Add HRA
HRA = Revised Basic Pay × Applicable %

Step 5: Add TA, then subtract standard deduction.

Final output = Gross Salary per month.

This gives you a decent picture of what 2026 might look like for your pay slip.

Fitment Factor History (4th to 8th CPC)

Pay CommissionHike (%)Fitment FactorMinimum Basic Salary
4th CPC27.6%₹750
5th CPC31%₹2,550
6th CPC54%1.86₹7,000
7th CPC14.29%2.57₹18,000
8th CPC (expected)20%+3.00₹21,600–₹41,000 (expected)

Expected 8th CPC Pay Matrix (All Levels)

Below are some key levels and their projected salaries:

Level7th CPC Basic8th CPC Expected Basic
Level 1₹18,000₹21,600
Level 2₹19,900₹23,880
Level 3₹21,700₹26,040
Level 4₹25,500₹30,600
Level 5₹29,200₹35,040
Level 6₹35,400₹42,480
Level 7₹44,900₹53,880
Level 8₹47,600₹57,120
Level 9₹53,100₹63,720
Level 10₹56,100₹67,320
Level 11₹67,700₹81,240
Level 12₹78,800₹94,560
Level 13₹1,23,100₹1,47,720
Level 13A₹1,31,100₹1,57,320
Level 14₹1,44,200₹1,73,040
Level 15₹1,82,200₹2,18,400
Level 16₹2,05,400₹2,46,480
Level 17₹2.25 lakh₹2.70 lakh
Level 18₹2.50 lakh₹3 lakh

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