Winning Bizness Desk
Mumbai.The 8th Pay Commission may take until 2028 to be fully implemented. The Union Cabinet had approved it in January, but the official notification, final terms of reference, and the list of commission members are yet to be released. Despite this, the commission’s recommendations will take effect from January 1, 2026, meaning employees will receive two years of arrears once it is implemented.
Beneficiaries of the New Pay Commission
The new pay structure will benefit more than 50 lakh central government employees and approximately 65 lakh pensioners. For central employees at Level-1, the basic salary could rise from ₹18,000 to ₹44,000. The commission may apply a fitment factor of 2.46 while revising the pay scales.
Impact on Salary Structure
The exact increase in basic pay will depend on the fitment factor and DA merger. In the 7th Pay Commission, the fitment factor was 2.57, while in the 8th, it is likely to be 2.46. Every pay commission starts DA from zero, because the new basic pay already accounts for inflation. DA will gradually increase after the new salaries are implemented. Currently, DA is 55 percent of basic pay, and its removal in the initial stage may make total salary increase appear smaller.
Example of Salary Calculation
For example, an employee at Level-6 under the 7th Pay Commission has the following structure: Basic pay: ₹35,400, DA (55%): ₹19,470, HRA (metro, 27%): ₹9,558, total salary: ₹64,428. Under the 8th Pay Commission with a fitment factor of 2.46, the new basic pay would be ₹87,084, DA resets to 0, HRA (27%): ₹23,513, making total salary ₹1,10,597.
Understanding Fitment Factor
The fitment factor is a multiplier applied to the current basic pay to calculate the new basic salary. The commission decides this factor keeping inflation and living costs in mind. It ensures that salaries are revised fairly and reflect current economic conditions.
Timeline for Full Implementation
It usually takes two to three years from forming a pay commission to full implementation. Even if the commission is formed soon, preparing the report, getting government approval, and finalizing all procedures will require time. Past commissions followed similar timelines. The effective date of the 8th Pay Commission is January 1, 2026, so salary and pension increases will be counted from this date, even if full implementation occurs later.
Previous Pay Commission History
The 5th Pay Commission was formed in April 1994, submitted its report in January 1997, and recommendations were applied from January 1996. The 6th Pay Commission was established on October 20, 2006, report prepared in March 2008, approved in August 2008, and effective from January 1, 2006. The 7th Pay Commission was formed in February 2014, terms finalized by March 2014, report submitted in November 2015, approved in June 2016, effective from January 1, 2016.
Pointers in a Nutshell
1. 8th Pay Commission may take until 2028 for full implementation.
2. Arrears from January 1, 2026, will be paid to employees.
3. Over 50 lakh employees and 65 lakh pensioners will benefit.
4. Level-1 basic pay may rise from ₹18,000 to ₹44,000.
5. Fitment factor likely to be 2.46; DA resets to zero initially.
6. Total salary increase may seem smaller due to DA reset.
7. Past pay commissions took 2-3 years from formation to full effect.
