The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has officially moved forward with the 8th Central Pay Commission (8th CPC). Approved on January 16, 2025, and notified in November 2025, this commission is set to fundamentally restructure the compensation, allowances, and pensions for nearly 48.62 lakh employees and 67.85 lakh pensioners.
The 8th Central Pay Commission is tasked with reviewing the emoluments and service conditions of Central Government staff, including those in the Defense, Railways, and Home Ministry.
| Feature | Details |
| Chairperson | Justice Ranjana Prakash Desai (Retd.) |
| Member-Secretary | Pankaj Jain (IAS) |
| Part-time Member | Prof. Pulak Ghosh (IIM Bengaluru) |
| Expected Fitment Factor | 2.28 to 3.00 (Projected) |
| Minimum Basic Pay | From ₹18,000 to ₹41,000+ (Expected) |
| Effective Date | January 1, 2026 |
| Beneficiaries | ~1.16 Crore (Employees + Pensioners) |
Salary Structure and Fitment Factor
The Fitment Factor is the crucial multiplier that converts the 7th CPC basic pay into the new 8th Central Pay Commission structure. While the 7th CPC used a factor of 2.57, current discussions suggest a shift to accommodate rising inflation and the projected merger of Dearness Allowance (DA), which is expected to reach 60% to 70% by 2026.
Expected 8th Central Pay Commission Pay Matrix
| Pay Level | 7th CPC Basic (₹) | 8th CPC Basic (Expected 2.28 Factor) |
| Level 1 | 18,000 | 41,040 |
| Level 5 | 29,200 | 66,576 |
| Level 10 | 56,100 | 1,27,908 |
| Level 18 (Apex) | 2,50,000 | 5,70,000 |
8th Central Pay Commission Salary Calculator Guide
To estimate your revised gross salary, follow this multi-step formula. Note that upon implementation, the DA is typically reset to 0% as it is merged into the new basic pay.
The Formula
Gross Salary = (Current Basic × Fitment Factor) + New DA + HRA (based on city) + TA
- Step 1: Multiply your current basic pay by the fitment factor (e.g., 2.28 or 3.0).
- Step 2: Add HRA based on your city class:
- Class X (Metros): 30% of new basic
- Class Y (Tier-2): 20% of new basic
- Class Z (Tier-3): 10% of new basic
- Step 3: Add Travel Allowance (TA) based on your level and city classification.
Impact on Pensioners
The 8th CPC aims to bring substantial post-retirement security. The minimum pension, currently at ₹9,000, is projected to rise to roughly ₹20,500.
- Dearness Relief (DR): Will be revised in line with the new base salary.
- Pension Parity: The commission is examining better parity between pre-2026 and post-2026 retirees.
- NPS/UPS Updates: Adjustments to the National Pension System (NPS) or Unified Pension Scheme (UPS) are being evaluated to ensure a minimum monthly pension (e.g., ₹10,000) for qualifying staff.
Ten FAQs on the 8th Pay Commission
When will the 8th Pay Commission be implemented?
The 8th Pay Commission is expected to be effective from January 1, 2026.
Who is the Chairperson of the 8th Pay Commission?
Retired Supreme Court Justice Ranjana Prakash Desai has been appointed as the Chairperson.
What is the expected fitment factor for the 8th CPC?
Experts project a fitment factor ranging between 2.28 and 3.00, though final recommendations are pending.
How much will the minimum basic pay increase?
The minimum basic pay is expected to rise from the current ₹18,000 to approximately ₹41,000 or more.
Will employees receive arrears for the 8th Pay Commission?
If implementation is delayed beyond January 2026, employees are likely to receive arrears from the effective date once notified.
What happens to the Dearness Allowance (DA) after implementation?
DA is usually merged into the basic pay upon implementation and reset to 0% for the new scale.
What is the expected minimum pension under the 8th CPC?
The minimum pension is projected to increase from ₹9,000 to approximately ₹20,500.
How is the revised basic pay calculated?
It is calculated by multiplying the current 7th CPC basic pay by the approved fitment factor.
Who are the members of the 8th Pay Commission panel?
The panel includes Justice Ranjana Prakash Desai (Chair), Pankaj Jain (Member-Secretary), and Pulak Ghosh (Part-time Member).
How many people will benefit from the 8th Pay Commission?
Approximately 49 lakh central government employees and 68 lakh pensioners will be impacted by these reforms.
