8th Pay Commission: Here's What Salary Hike Central Government Employees Likely To Get In 2026

The salary revisions are projected to fall between Rs 20,000 and Rs 25,000, significantly boosting take-home pay. Additionally, minimum pensions are likely to witness a steep increase, potentially reaching Rs 20,500

The Dearness Allowance, expected to reach 70 per cent by early 2026, will also be merged with the base salary to streamline the pay revision process

Source : Freepik

The Union Cabinet has given a go-ahead to the implementation of the 8th Pay Commission, which is scheduled to take effect from January 1, 2026. This decision is set to impact the lives of nearly 48.62 lakh government employees and 67.85 lakh pensioners across the country, offering enhanced pay structures, revised allowances, and increased pensions.

The primary objective behind the formation of the new pay commission is to revise compensation and welfare policies in line with current economic conditions, inflation trends, and the growing demands of central government employees. The proposed Fitment Factor of 3.00 suggests a possible 34.1 per cent hike in minimum pay, which could take the base salary to Rs 21,600.

The Dearness Allowance (DA), expected to reach 70 per cent by early 2026, will also be merged with the base salary to streamline the pay revision process. The salary revisions are projected to fall between Rs 20,000 and Rs 25,000, significantly boosting take-home pay. Additionally, minimum pensions are likely to witness a steep increase, potentially reaching Rs 20,500.

Employees and pensioners can track official announcements via the Department of Personnel and Training’s website at https://dopt.gov.in/.

How To Estimate Your Revised Salary

To help employees plan, a simple calculator can estimate gross salary under the new pay norms:

1. Identify Your Current Basic Pay (as per 7th Pay Commission).
2. Revised Basic Pay = Current Basic Pay × 3.00 (Fitment Factor).
3. DA Calculation = Revised Basic Pay × 0.50.
4. HRA Calculation = Revised Basic Pay × HRA Rate (Metro: 27 per cent, Tier-2: 20 per cent, Tier-3: 10 per cent).
5. Add Travel Allowance (TA) based on city and job level.
6. Gross Salary = Revised Pay + DA + HRA + TA – Standard Deduction.

Evolution Of Pay Commissions Over The Years

Historically, each Pay Commission has introduced notable hikes:

• 4th Pay Commission: 27.6 per cent hike; Minimum Salary: Rs 750
• 5th Pay Commission: 31 per cent hike; Minimum Salary: Rs 2,550
• 6th Pay Commission: 54 per cent hike with a fitment factor of 1.86; Minimum Salary: Rs 7,000
• 7th Pay Commission: 14.29 per cent hike; Fitment Factor: 2.57; Minimum Salary: Rs 18,000
• 8th Pay Commission: Expected 20 per cent hike; Fitment Factor: 3.00; Minimum Salary: Rs 21,600