8th Pay Commission cleared, minimum salary may rise to ₹51,480 from January 2026

The Indian government has approved the formation of the 8th Pay Commission, aiming to revise the salary and pension structure for over 1 crore central government employees and pensioners. The updated pay scale is expected to be implemented from January 1, 2026, bringing a significant boost in earnings for multiple pay grades.

One of the central elements under discussion is the proposed fitment factor—used to multiply current basic pay for revised calculations. While the 7th Pay Commission used a factor of 2.57, early estimates suggest the 8th may propose an increase to 2.86. This could raise the minimum basic salary from ₹18,000 to approximately ₹51,480 and pensions from ₹9,000 to around ₹25,740.

The impact of these revisions will extend beyond basic pay. Allowances such as HRA and TA will also be recalibrated based on city category and role-specific travel requirements. Additionally, contributions to the National Pension System (NPS) and Central Government Health Scheme (CGHS) will rise, aligning with the revised pay structure.

For instance, employees in Grade 2000 (Level 3) may see a gross salary of ₹74,845, while those in Grade 6600 (Level 11) could receive up to ₹2,35,920 gross, with a take-home of around ₹2,16,825. These figures reflect estimated revisions based on a fitment factor of 2.86 and are subject to final approval by the commission.