8th Pay Commission 2026: Salary Hike, Allowance Cuts, Benefits & Full Details
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Central government employees and pensioners are eagerly waiting for the 8th Pay Commission . With expectations of a salary boost, the new pay panel may also streamline allowances, much like the 7th Pay Commission did.
Back in 2016, the 7th Pay Commission reviewed nearly 200 allowances, scrapping 52 and merging several others to simplify the salary structure. The upcoming commission is expected to follow a similar model-focusing on higher basic pay and Dearness Allowance (DA) while trimming minor perks such as travel allowance, special duty allowance, and small regional benefits.
At the heart of the hike lies the fitment factor-a multiplier applied to basic pay. Experts believe this could range between 1.83 and 2.86, translating to a 13%–34% salary increase. However, the current 55% DA will reset to zero and merge with basic pay once the new structure takes effect. This may balance out the final figures, but employees and pensioners should still see a clear benefit, especially since pensions are directly linked to basic pay.
The government formally announced the 8th Pay Commission in January 2025, but details regarding its members and Terms of Reference (ToR) are still awaited. If past timelines are any indication, recommendations may be ready by early 2028, though the revised pay will apply retrospectively from 2026.
In total, nearly 49 lakh central employees and 65 lakh pensioners stand to benefit from the new framework, making the 8th Pay Commission one of the most closely watched reforms for government staff.
Back in 2016, the 7th Pay Commission reviewed nearly 200 allowances, scrapping 52 and merging several others to simplify the salary structure. The upcoming commission is expected to follow a similar model-focusing on higher basic pay and Dearness Allowance (DA) while trimming minor perks such as travel allowance, special duty allowance, and small regional benefits.
At the heart of the hike lies the fitment factor-a multiplier applied to basic pay. Experts believe this could range between 1.83 and 2.86, translating to a 13%–34% salary increase. However, the current 55% DA will reset to zero and merge with basic pay once the new structure takes effect. This may balance out the final figures, but employees and pensioners should still see a clear benefit, especially since pensions are directly linked to basic pay.
The government formally announced the 8th Pay Commission in January 2025, but details regarding its members and Terms of Reference (ToR) are still awaited. If past timelines are any indication, recommendations may be ready by early 2028, though the revised pay will apply retrospectively from 2026.
In total, nearly 49 lakh central employees and 65 lakh pensioners stand to benefit from the new framework, making the 8th Pay Commission one of the most closely watched reforms for government staff.
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