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8th Pay Commission: New Salary Structure, Fitment Factor and 90 Paisa Calculator

8th Pay Commission Basic Salary Structure | Implementation Date, New Salary Structure, Fitment Factor and 90 Paisa Calculator

8th Pay Commission Date Implementation Date: The highly anticipated announcement regarding the constitution of the 8th Central Pay Commission is soon to be officially released, sparking excitement and curiosity among millions of government employees across India who eagerly await this crucial news in the weeks leading up to January! This significant event occurs once every ten years, during which the basic pay and pension for all categories of central government employees and pensioners are thoroughly revised and updated to reflect the changing economic landscape better.

As the current pay commission is scheduled to conclude its tenure at the end of December 2025, preparations are already underway. Once the clock strikes midnight on January 1, 2026, the recommendations put forth by the new pay commission will be implemented, potentially altering the financial futures of countless individuals and their families.

Constitution of 8th Pay Commission Date

Heading8th Pay Commission 2026
BeneficiariesCentral Government Employees
Panel Committee HeadNot Yet Constituted
8th CPC Committee MembersNot Yet Decided
8th CPC Implementation Date1st Jan 2026 (Thursday)
8th CPC Frequency10 Years
Home PageClick Here

Constitution of the 8th Pay Commission: Latest News on July 22, 2024

In a recent and significant discussion held in Parliament regarding the constitution of the highly anticipated 8th Pay Commission for Central Government Employees, the Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, provided important updates. He indicated that two formal representations were received in June 2024, expressing concerns and requests related to the establishment of the 8th Central Pay Commission. However, despite these representations highlighting the pressing need for a review of pay structures, the government currently has no proposals under consideration for this commission at this time, much to the disappointment of many employees and their representatives who are eagerly awaiting potential adjustments to their compensation.

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Formation of the 8th Central Pay Commission: IRTSA Memo Forwarded to Ministry of Finance

The Office Memorandum, dated March 20, 2024, and issued by the Ministry of Personnel, Public Grievances & Pensions, serves as a vital piece of correspondence that transmits a detailed communication from the Indian Railways Technical Supervisors’ Association (IRTSA) to the Department of Expenditure. This document is not merely a formality; it represents the formal initiation of the process advocating for the establishment of the 8th Central Pay Commission, which is essential for ensuring fair compensation for government employees.

In this important memorandum, addressed specifically to the Department of Expenditure, the Ministry acknowledges the receipt of the IRTSA’s communication, which passionately advocates for the formation of the 8th Central Pay Commission. The establishment of a new pay commission holds tremendous significance within the governance framework of the country, as it directly impacts the financial well-being and job satisfaction of government employees across various sectors.

Central Pay Commissions are tasked with the critical role of assessing and evaluating the existing salary structures and frameworks for government employees, which includes a thorough analysis of the living costs, inflation rates, and the overall economic climate. By making informed recommendations about salary adjustments, allowances, and benefits, these commissions play a pivotal role in enhancing the quality of life for civil servants, ensuring they are adequately compensated for their dedicated service to the nation.

Expected Minimum Basic Salary in 8th Pay Commission

The establishment of the minimum basic salary under the 8th Pay Commission hinges on the deliberations of the central pay commission’s panel committee. This committee engages with a variety of stakeholders, including members of the Joint Consultative Machinery, union federations, associations, and personnel from the armed forces. In the previous pay commission, the minimum basic salary was determined in accordance with the 15th ILC guidelines and the Aykroyd formula, which set the salary range between 7,000 and 18,000, with adjustments made using a fitment factor ratio of 2.57. It is expected that the 8th Pay Commission will adopt a similar approach and formula, aiming for a proposed minimum basic salary of 26,000 per month.

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Grasping the Fitment Factor Ratio in the 8th Pay Commission

The Fitment Factor ratio outlined in the 8th Pay Commission plays a vital role in the overall Pay Commission findings. The earlier 7th CPC established this ratio at 2.57, which played a significant role in shaping salary frameworks. This ratio’s computation is closely linked to the percentage of Dearness Allowance, an essential element that impacts total compensation. Ultimately, the concluding percentage of Dearness Allowance will determine the fitment factor ratio for the 8th Pay Commission.

CPCPay Hike in %Fitment FactorMinimum Basic Salary
4th CPC27.6%750
5th CPC31%2,550
6th CPC54%1.867000
7th CPC14.29%2.5718,000

Determining the Fitment Factor for the 8th Pay Commission

The reasoning behind the 7th Pay Commission’s use of various fitment factors to establish base salaries is somewhat ambiguous. A range of factors, including 2.57, 2.62, 2.67, 2.78, and 2.81, contributed to the creation of the pay matrix table. The fitment factor is calculated based on the final installment of the Dearness Allowance (DA), with a key focus on the DA percentage following the conclusion of the 7th CPC term.

Forecasts indicate that by December 31, 2025, the DA rate could reach 62%, just ahead of the expected introduction of the 8th Pay Commission on January 1, 2026. Merging the DA into the base salary is a standard procedure adopted by all pay commissions. This process involves incorporating the DA into the base pay, after which the commission will assess the percentage increase over the next decade, from 2026 to 2035.

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Basic Salary100%
DA62%
8th CPC Hike (Expected)27%
Fitment Factor189% (1.89)

8th Pay Commission Salary Estimator

With the recent release of the 8th Pay Commission’s recommendations, we’re excited to provide an easy-to-use online tool exclusively for central government employees right here on this page. This innovative calculator is designed to help you figure out your updated basic salary, effective from January 1, 2026, in line with the Union Government’s approved guidelines. A vital step in transitioning from your existing basic pay as of December 31, 2025, established by the 7th CPC to the new 8th CPC is the Fitment Factor ratio. Once we establish this ratio, our calculator will precisely determine your updated basic salary, ensuring you receive the latest and most accurate information available.