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8th Pay Commission: Estimated Revised Salaries & Allowances for Central and State Government Employees from 2026 (With Fitment Factor Table for Level 1 to 18)

Introduction

In 2024–2025, the Indian government is expected to form the 8th Pay Commission, which will take effect on January 1st, 2026. Nearly one crore Central and State Government employees and pensioners will have their basic pay structure, benefits, and pensions revised by this pay commission.

With a fitment factor of 2.57, the 7th Pay Commission was put into effect in 2016 and significantly changed pay scales. The 8th Pay Commission is anticipated to suggest a new fitment factor in light of growing inflation and living expenses; this might range from 1.92 to 2.08 to 2.86, contingent on a number of political and economic considerations.

The 8th Pay Commission: What is it?

Every ten years, the Pay Commission is established to update the wages, benefits, and pensions of federal and state government workers. Projects in the public sector and independent organisations that get funds from the central government are also impacted. In order to ensure living wage standards, combat inflation, and streamline pay, the 8th Pay Commission will be essential.

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Activity	Expected Date
Constitution of Commission	Late 2024 or Early 2025
Recommendations Submitted	Mid 2025
Cabinet Approval	Late 2025
Implementation Effective From	1 January 2026

What Fitment Factor Means?

The present basic pay is revised into the new structure using a multiplier called the fitment factor. The fitment factor used in the 7th Pay Commission was 2.57. Three potential fitting criteria are anticipated to be taken into account by the 8th Pay Commission:

• 1.92 (modestly edited)
• 2.08 (revision with optimism)
• 2.86 (a forceful change akin to early pay commissions)

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Level	Current Basic Pay	With 1.92x Factor	With 2.08x Factor	With 2.86x Factor
Level 1	₹18,000	₹34,560	₹37,440	₹51,480
Level 2	₹19,900	₹38,208	₹41,392	₹56,914
Level 3	₹21,700	₹41,664	₹45,136	₹62,062
Level 4	₹25,500	₹48,960	₹53,040	₹72,930
Level 5	₹29,200	₹56,064	₹60,736	₹83,512
Level 6	₹35,400	₹67,968	₹73,632	₹101,244
Level 7	₹44,900	₹86,208	₹93,392	₹128,414
Level 8	₹47,600	₹91,392	₹99,008	₹136,136
Level 9	₹53,100	₹101,952	₹110,448	₹151,866
Level 10	₹56,100	₹107,712	₹116,688	₹160,446
Level 11	₹67,700	₹129,984	₹140,816	₹193,642
Level 12	₹78,800	₹151,296	₹163,904	₹225,448
Level 13	₹1,23,100	₹236,352	₹255,048	₹351,066
Level 13A	₹1,31,100	₹251,712	₹271,488	₹373,946
Level 14	₹1,44,200	₹276,864	₹298,944	₹411,412
Level 15	₹1,82,200	₹349,824	₹377,976	₹521,092
Level 16	₹2,05,400	₹394,368	₹425,232	₹587,444
Level 17	₹2,25,000	₹432,000	₹468,000	₹643,500
Level 18	₹2,50,000	₹480,000	₹520,000	₹715,000

Note: This table is based on hypothetical multipliers for estimation. The actual fitment factor may vary once officially announced.

Expected Major Changes to the 8th Pay Commission: 

1. An increase in basic pay

A significant pay increase with an anticipated fitting factor of 1.92 to 2.86.

2. Allowance for Dearness (DA) 

 Before the new structure is put into place, merger DA may be combined with basic pay and reset to 0%.

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3. Allowance for House Rent (HRA)

Most likely to be raised and recategorised in accordance with the most recent city classifications.

4. Medical and Transportation Allowance

Based on inflation and the cost of living, a modification to medical benefits and transportation is anticipated.

5. The New Pay Structure

Better pay fairness and more detailed processes could be added to the present pay matrix.

6. Focus on Contractual & Pension Reforms

A popular topic might be the introduction of reforms for contractual workers and a comparison of the Old Pension Scheme (OPS) and the National Pension System (NPS). 

Employees of the State Government and the 8th Pay Commission
Employees of the Central Government directly profit from this, however most State Governments follow the pay commission's recommendations with minor adjustments or delays. As a result, a total of about 2 crore Central and State employees and pensions will be impacted... Read more.

Effects on the Economy

The following outcomes could result from the 8th CPC's implementation:

1. An increase in consumer expenditure
2. Demand for real estate is rising.
3. pressure on the fiscal deficit if improperly handled
4. Increased demand in the retail, electronics, and automotive industries

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Conclusion:

The pay structure for thousands of Central and State Government employees is expected to undergo significant change as a result of the 8th Pay Commission 2026. The need for a significant pay modification is clear given the rise in prices and the socioeconomic changes occurring. The main aspect that will determine how generous or conservative the pay increase is will be the fitting factor.

Although policy decisions and the state of the economy will ultimately determine the outcome, employees in all departments are hoping for a least 2.5x rise. The events surrounding the 8th CPC will be significant for workers and the national economy as 2026 draws closer.

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