Current minimum basic pay is ₹18,000. With a speculated fitment factor of 1.92, as per the 8th Pay Commission the new basic pay would be ₹18,000 × 1.92 = ₹34,560
Central government employees are eagerly awaiting the 8th Pay Commission, with much curiosity surrounding the salary calculation formula. Will it be a new formula, or will it follow the same Pay Matrix structure as the 7th Pay Commission? What will the fitment factor be? Amid these technical questions, employees are keen to know how much their salaries will increase under the new commission. According to ongoing discussions in government circles, the salary calculation formula is unlikely to change. Instead, the Pay Matrix from the 7th Pay Commission will likely serve as the foundation, with a new fitment factor applied.
The Pay Matrix of the 7th Pay Commission consists of 18 levels, designed for simplicity and ease of understanding, replacing the older pay band and grade pay system. Reports suggest the government may retain this structure for the 8th Pay Commission.
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The Pay Matrix is based on the Dr. Wallace Aykroyd Formula, which determines the minimum salary required to meet an employee’s basic needs. This formula underpins the minimum salary and the structure of the Pay Matrix.
How Much Will Your Salary Increase?
Under the current system, the minimum basic pay is ₹18,000. With a speculated fitment factor of 1.92, the new basic pay would be calculated as ₹18,000 × 1.92 = ₹34,560. This represents an increase of over ₹16,500 in basic pay alone. Additional allowances such as Dearness Allowance (DA), House Rent Allowance (HRA), and others will further boost the total salary.
For employees with a basic pay of ₹60,000, such as Group B gazetted officers, the salary calculation under the 8th Pay Commission would be:
- Basic Pay: ₹60,000
- Fitment Factor: 1.92
- New Basic Pay: ₹60,000 × 1.92 = ₹1,15,200
- DA (55%): ₹63,360
- HRA (Metro City, 27%): ₹31,104
Total Salary: ₹2,09,664 (plus other allowances).
Thus, a Group B gazetted officer with a current basic pay of ₹60,000, whose total salary is approximately ₹1.10 lakh, could see their salary exceed ₹2.10 lakh under the 8th Pay Commission.
When Will the 8th Pay Commission Be Implemented?
The 8th Pay Commission has not yet been formally constituted. It is speculated that it may come into effect from 2026. Employees are hopeful that the government will issue a notification by the end of this year, potentially allowing them to receive the revised salary and arrears from January 1, 2026.
Additionally, discussions are underway to increase the accident insurance limit for central employees. There is also talk of merging some pay levels, which could reduce the number of levels from 18. If implemented, this could streamline promotions, reducing waiting periods for employees.
