8th Pay Commission: Discover all updates including salary hike

Every few years, government employees across India eagerly await a landmark decision that can change their financial outlook—the announcement of a new Pay Commission. The 8th Pay Commission is the next big wave in this cycle, and it has already become one of the most discussed topics among central and state government employees. The anticipation is understandable—after all, each Pay Commission plays a pivotal role in revising salaries, pensions, and allowances, directly impacting millions of employees and their families.

8th Pay Commission: Essential information about Cabinet decisions

The Cabinet statement states that the 8th Central Pay Commission Commission will operate as a temporary body with a chairperson, one member-secretary, and one part-time member. Its recommendations are required within 18 months after its creation, and when some suggestions are finalized, interim reports may be submitted.The government will receive a preliminary report from the 8th Pay Commission, which is headed by retired Supreme Court justice Ranjana Prakash Desai.
IIM Bangalore professor Pulak Ghosh has been named a part-time commissioner, and Pankaj Jain, the petroleum secretary, will be the member secretary.

Major Expectations from Government Employees

Government employees across the nation have high hopes from the 8th Pay Commission. After nearly a decade since the 7th Pay Commission, the cost of living has increased substantially—everything from groceries to housing, transportation, and education has become more expensive. Employees now expect that the new commission will not just revise the pay scales but will also modernize the entire compensation structure to match today’s economic conditions.

Salary Hike Expectations

One of the most discussed aspects of the upcoming commission is the fitment factor—the multiplier used to calculate the new basic pay from the existing pay. Under the 7th Pay Commission, the fitment factor was 2.57, which resulted in a salary increase of approximately 14–16%. However, considering inflation and current market standards, employees are demanding that the 8th Pay Commission raise the fitment factor to 3.68 or even 4.0. This could mean a salary hike of 35–45%, depending on the pay level.Such an increase would not only make government jobs more attractive but also help employees cope with the continuously rising expenses. Many unions have already submitted memorandums urging the government to consider this substantial increment to maintain parity with the private sector and to ensure fair compensation.

DA (Dearness Allowance) Merger and Benefits

Another key expectation revolves around the merger of Dearness Allowance (DA) into the basic pay. At present, government employees receive DA twice a year to offset inflationary pressures. However, when DA crosses the 50% threshold, it is typically merged with the basic pay during the central pay commission revisions. As of 2025, DA is nearing that limit, which strongly indicates that it will be merged under the 8th Pay Commission.This merger will not only increase the take-home salary but also raise all related benefits—such as HRA (House Rent Allowance), TA (Travel Allowance), and Pension Contributions, since these are calculated as percentages of basic pay. For employees, this could mean a substantial overall boost to their monthly income and retirement savings.

Proposed Salary Structure Under the 8th Pay Commission

Though the government has not officially released any draft or recommendation yet, various analysts and employee associations have made projections based on previous trends and inflation data.

Expected Fitment Factor

The fitment factor plays a crucial role in determining the new salary. Based on the rising cost of living and employee demands, it’s likely that the 8th Pay Commission will recommend a fitment factor between 3.68 and 4.0. This means that if an employee currently earns a basic salary of ₹30,000, it could increase to around ₹1,10,000–₹1,20,000 after the revision.

Pay Matrix Revisions

The Pay Matrix introduced in the 7th Pay Commission brought uniformity, but it also introduced complexity. Many employees found the 40-level matrix confusing, with overlapping grades. The new commission may simplify this structure by reducing the number of levels, ensuring smoother promotions and clarity in pay progression.