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8th Pay Commission latest news: The biggest news regarding the 8th Pay Commission has come to light. Sources indicate that the basic salary of government employees could increase from ₹18,000 to ₹34,560, due to a fitment factor of 1.92. 8th CPC Salary Calculator: The wait for central government employees is over. The 8th Pay Commission has been formed. The Terms of Reference have been approved. The fitment factor for the new salary will be proposed. There is considerable speculation surrounding the 8th Pay Commission. Questions such as what the fitment will be? What will happen to dearness allowance? How much will the salary increase be after including other allowances? And most importantly, will there be any major decisions regarding promotions and pay grade levels? According to sources, this time salaries will see a significant increase. Regardless of the fitment, employees’ salaries are likely to see a significant increase. 8th Pay Commission: What will the fitment factor be? First, let’s discuss the fitment factor. The speculation and ongoing discussions so far have mentioned three fitment factor numbers. There is talk of keeping the first one at 1.92, the second at 2.57 (current), and the second at 2.86. Meanwhile, the employee union has been demanding a fitment factor of 3.68 times since the inception of the 7th Pay Commission. However, experts are clear: the fitment factor will likely be around 1.92. This will also result in a significant increase in current salaries. If the experts’ predictions are correct, then those with a current basic salary of Rs 18,000 could have a new basic salary of Rs 34,560. However, this will not be the final basic. There’s a catch. 8th Pay Commission: Dearness Allowance (DA) to Bring a Huge Rise The current dearness allowance (DA) for central government employees is 58 percent, effective from July 2025. It will be revised again in July 2025. Based on the current AICPI index trend, it could reach 61 percent. If this trend continues, the dearness allowance effective from January 2026 will be 61 percent, meaning a 3 percent increase once again. However, when announcing the 8th Pay Commission, the government had stated that it would be implemented from January 1, 2026. In this case, the dearness allowance will be 61 percent, and since the new Pay Commission will be implemented, it will be merged into the basic salary. This means that those with a basic salary of ₹18,000 could have a revised basic salary of ₹28,980. What will be the new basic salary under the 8th Pay Commission? When the 8th Pay Commission is implemented, the new basic salary will be determined by combining the current basic salary, dearness allowance, and fitment factor. This means that 18,000 + 10,980 = 28,980 * fitment factor (1.92). In such a situation, the new basic salary for employees at Level 1, Grade Pay 1800, could be ₹55,641. This is because the dearness allowance will be reduced to zero in the new Pay Commission, and the existing dearness allowance can be merged into the basic salary. Fitment will then apply, potentially resulting in a significant increase in employees’ salaries. However, the decision to merge the dearness allowance rests with the Pay Commission, subject to Cabinet approval. If the government, instead of merging the salary, makes a lump sum payment of 61% to employees, the basic salary will remain the same, and the new basic salary will be ₹34,560. 8th Pay Commission: What will happen to HRA and TA? Whenever a new Pay Commission is introduced, allowances are revised. If dearness allowance is reduced to zero, HRA rates will also be revised. Travel allowance (TA) may also be revised. However, this will depend on the Pay Commission’s recommendations. If we assume that an employee currently holds a Level 1 position but is posted in City X, their HRA will be 27% of the current rate (which may vary after the revision). The travel allowance will be based on the higher TPTA city. However, even if this remains unchanged, the total HRA at 27% will be ₹9,331, and the TA will be ₹1,350. So, what will be the net salary? The total salary under the 8th Pay Commission, i.e., net salary, can be estimated by adding all allowances and fitments. However, it’s not appropriate to include dearness allowance right now. This requires considering the Pay Commission’s recommendations. However, if we assume dearness allowance is zero and calculate the salary based on Level 1 pay grade of 1800, the salary will be something like this. Read More: Public Holiday 2026: 31 public holidays and 19 optional holidays declared in the year 2026, check holiday calendar
