https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

8th Pay Commission to Bring Big Changes: Basic Pay May Rise to ₹51,480

The government approves the 8th Pay Commission; major salary and pension hikes are likely for central employees from January 2026, based on the revised structure.
Indian Masterminds Stories

The Indian government has recently approved the establishment of the 8th Pay Commission, aimed at revising the salary structure for over one crore central government employees and pensioners. Scheduled to take effect from January 1, 2026, the proposed changes include a significant increase in the fitment factor, which determines the revised pay scales. While the previous 7th Pay Commission used a factor of 2.57, the 8th Pay Commission is proposing an enhancement to 2.86, potentially leading to substantial increases in take-home pay across all levels.

Key proposals also include raising the minimum basic pay from Rs 18,000 to Rs 51,480 and increasing the minimum pension from Rs 9,000 to Rs 25,740, pending final approval by the commission. These adjustments are based on projections with the 2.86 fitment factor, with the commission expected to submit its comprehensive report by mid-2025.

Additionally, allowances such as House Rent Allowance (HRA) and Travel Allowance (TA) will be recalculated, varying based on employees’ city of posting and job-related travel needs. This could lead to varying gross pay among employees in different cities or departments, with those in metropolitan areas likely to receive higher HRA benefits.

The revisions will also impact contributions to schemes like the National Pension System (NPS) and the Central Government Health Scheme (CGHS). Employees’ contributions to NPS, currently at 10% of basic pay and dearness allowance (DA), along with the government’s matching 14%, will adjust accordingly with the new pay structures. Similarly, CGHS subscription amounts will be revised to align with updated salary levels.

Estimated salary figures across different grades illustrate potential changes, but these are subject to the commission’s final recommendations and subsequent Cabinet approval. The government aims to expedite the commission’s proposals ahead of the 2026 Union Budget and the upcoming general elections, highlighting its strategic importance as a policy move with broad public implications.

While the salary hike is seen as necessary by many, retired bureaucrats and financial experts emphasize the importance of fiscal prudence, cautioning against potential impacts on the fiscal deficit. The commission is expected to finalize its report by late 2025, followed by detailed scrutiny and official notification by the Cabinet.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
ChhattisgarhGovt_resized
Chhattisgarh Records 34% Rise in Mineral Revenue, Sets New Targets at Geological Board Meet; Future Roadmap Discussed
Vish
Chhattisgarh CM Invites Japanese Firm for Food Processing and Electronics Facilities; Mineral-Rich State Owns Up Japanese Tech
Rajnath Singh
A Leap Towards Aatmanirbhar Bharat: Rajnath Singh Commissions INS Udaygiri & INS Himgiri, India’s Next-Gen Stealth Frigates
Uttar Pradesh News
UP: CM Yogi Launches Real-time ERP-based Monitoring System for Atal Residential Schools, Around 18,000 Students To Be Facilitated
Rail News
PM Modi Dedicates Rs. 1,400 Crore Rail Projects in Gujarat, Mahesana-Palanpur Doubling & Kalol-Katosan Road Gauge Conversion Enabled
Indian Forest Services IFS officer
Uttarakhand Transfers 35 IFS Officers in Major Reshuffle; Sanjeev Chaturvedi Appointed Director, Forestry Training Academy
Hemant Soren CM
Jharkhand CM Hemant Soren Reviews Dhurwa Smart City Convention Centre, Orders Revival Plan Focusing On Utility and State Interest
PV Sunil Kumar, IPS
Andhra Pradesh Extends Suspension of Senior IPS Officer P.V. Sunil Kumar for Six More Months Amid Ongoing Inquiry- Know More
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-08-25 at 13.56
Operation Hunt: IPS Dr. Karanraj Vaghela’s Mission to Nab Valsad’s Most Wanted
Dr
Resisted Flawed Schemes, Transferred Thrice In Three Months, Found Solace In Writing
WhatsApp Image 2025-08-11 at 4.48
IAS SVR Srinivas on Mumbai Trans Harbour Link, Tough Calls, and the Real Power of IAS Officers | Video Interview
ADVERTISEMENT
UPSC Stories
IAS Minnu P M
“Lazy, Sleepy, Yet Determined”: Minnu P M’s Honest Take on Cracking UPSC
Minnu PM, once a clerk in Kerala Police, cleared UPSC with AIR 150 after five years of struggle. Her...
IPS Ashish Tiwari
From IIT and Investment Banking to Public Service, Meet IPS Ashish Tiwari 
Ashish Tiwari, IIT graduate and former investment banker, chose public service over global finance. As...
WhatsApp Image 2025-08-12 at 7.27
First Attempt IRS, Fourth Attempt IPS: The Relentless Pursuit of Jitendra Kumar Yadav Who Cracked UPSC 3 Times
IPS Yadav is originally from Chhattisgarh. He was first selected for the IRS through UPSC and later for...
Social Media
Masahiro Hara
From Go Board to Global Use, How QR Codes Changed the World: IRAS Officer Ananth Rupanagudi Spotlights Masahiro Hara’s Vision
IRAS officer Ananth Rupanagudi shared a video on Masahiro Hara, the inventor of QR codes, highlighting...
IFS Susanta Nanda Video
A Mother’s Duty: Tigress Watches Over Cubs Splashing in Waterhole — Heartwarming Video Shared By Retd. IFS Officer Susanta Nanda
A tender wildlife video shared by Retd. IFS officer Susanta Nanda shows a tigress keeping watch over...
Mohanmala
Kaziranga Mourns: Beloved Elephant Mohanmala Passes Away After Five Decades of Service
Kaziranga National Park mourns the loss of Mohanmala, a beloved elephant who served over 50 years as...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
ChhattisgarhGovt_resized
Chhattisgarh Records 34% Rise in Mineral Revenue, Sets New Targets at Geological Board Meet; Future Roadmap Discussed
Vish
Chhattisgarh CM Invites Japanese Firm for Food Processing and Electronics Facilities; Mineral-Rich State Owns Up Japanese Tech
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-08-25 at 13.56
Dr
WhatsApp Image 2025-08-11 at 4.48
ADVERTISEMENT
ADVERTISEMENT