8th Pay Commission: Central government employees are currently discussing just one question: “How much will my salary increase in 2026 and how big will the arrears be?”
The curiosity is natural, as the 8th Pay Commission has officially become effective from January 1, 2026, although its full implementation may take time.
Historically, every pay commission takes nearly two to three years from formation to complete rollout. Experts believe that the 8th Pay Commission recommendations may be fully implemented by 2028, but the financial benefit will be calculated retrospectively from January 1, 2026.
In this article, we explain the expected salary hike and arrears using the 7th Pay Commission structure, current demands, and an estimated fitment factor, taking ₹18,000 basic salary as the base. This is an estimated calculation, and actual figures may vary once official recommendations are announced.
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What Is the Fitment Factor?
The fitment factor is a multiplier used to calculate the revised basic salary of central government employees after a new pay commission is implemented.
Employee unions have already started pressing the government. The Federation of National Postal Organizations (FNPO) has submitted a letter requesting a fitment factor between 3.0 and 3.5 for postal employees across categories A, B, C, and D.
However, financial experts believe such a high multiplier is unlikely. According to estimates, the government may settle on a fitment factor between 2.57 and 2.86.
For comparison, the 7th Pay Commission used a fitment factor of 2.57.
If the 8th Pay Commission adopts a 2.86 fitment factor, salaries and arrears—from peon-level staff to IAS officers—could rise by 25% to 30%.
From When Will the Salary Hike Be Counted?
The 7th Pay Commission came into effect on January 1, 2016. Following the same pattern, the effective date of the 8th Pay Commission has been fixed as January 1, 2026.
Even if the final recommendations are implemented in 2027 or 2028, employees will receive arrears calculated from January 2026, covering both salary and pension increases.
How Much Will Basic Salary Increase With a 2.86 Fitment Factor?
The formula to calculate revised basic pay is simple:
Basic Salary × Fitment Factor = New Basic Salary
If the current basic salary is ₹18,000:
₹18,000 × 2.86 = ₹51,480
This means an employee drawing a basic pay of ₹18,000 could see it jump to ₹51,480 under the 8th Pay Commission.
Allowances like HRA, TA, and DA will be calculated on this revised amount.
How Much Will HRA Increase?
The government classifies cities into three HRA categories:
X category (metro cities) – 27% HRA
Y category (non-metro cities) – 18% HRA
Z category (small towns) – 9% HRA
If an employee lives in an X category city, the HRA will be 27% of the revised basic salary.
With a new basic salary of ₹51,480, the HRA calculation would be:
27% of ₹51,480 = ₹13,899 per month
This clearly shows that the overall monthly take-home salary could increase significantly once the 8th Pay Commission comes into force.
Important Note for Employees
All calculations mentioned above are based on estimates and current discussions. The final fitment factor, allowance structure, and implementation rules will only be clear after the 8th Pay Commission submits its official recommendations.
Until then, these figures should be treated as indicative, not final.
