8th Pay Commission 2026: Complete Guide to Expected Salary Hikes, Fitment Factor, and Allowances for Government Employees

The anticipated 8th Pay Commission is poised to deliver substantial salary increases for central government employees and pensioners across India.

With projections indicating a fitment factor of approximately 1.96, minimum basic pay could potentially double, while comprehensive compensation packages including Dearness Allowance (DA) and House Rent Allowance (HRA) are expected to rise considerably.

Although full implementation may extend into 2027, reports suggest that benefits will be retroactively applied from January 1, 2026.

Approximately 50 lakh central employees and 65 lakh pensioners stand to receive back pay once the revised pay structure is officially implemented.

The fitment factor represents a crucial element in salary determination under the 8th Pay Commission. This multiplier is utilized to calculate new basic salaries by multiplying an employee's existing basic pay.

For context, under the 6th Pay Commission, the minimum basic salary was established at Rs 7,000.

The 7th Pay Commission implemented a fitment factor of 2.57, elevating the minimum basic salary to Rs 18,000.

For the upcoming 8th Pay Commission, industry reports indicate the fitment factor might range between 1.92 and 2.86, with 1.96 emerging as a probable figure.

Assuming a fitment factor of 1.96, the current minimum basic salary of Rs 18,000 could increase to Rs 35,280 for Level-1 employees. This calculation excludes DA, though HRA will be added according to the employee's posting location.

The calculation formula for determining the new basic salary is:

Old Basic Salary x 1.96 = Basic Salary under 8th Pay Commission

Using this formula, basic salary increases can be projected across all employment levels, from Level 1 through Level 18.

To illustrate with a practical example, consider a Level-9 central government employee:

Current basic salary: Rs 53,100

Current DA (58% of basic): Rs 30,798

HRA for metropolitan cities like Delhi (27% of basic): Rs 14,337

Total current salary (Basic + DA + HRA) = Rs 98,235

Under the projected 8th Pay Commission framework:

New basic salary: Rs 1,04,076

DA reset: 0% = Rs 0

HRA (27% of basic): Rs 28,100.52

Total salary (Basic + DA + HRA) = Rs 1,32,177

It's important to note that these calculations remain estimates, as the official formula has not yet been finalized by the government.