How much will salaries increase after the 8th Pay Commission? Understand the new salary structure

Every ten years, a Pay Commission is constituted by the Central Government. In this, the current salary structure of central employees and pensioners including defence personnel is revised after looking at inflation and other things.

New Delhi: Central employees and pensioners across the country are eagerly waiting for the Eighth Pay Commission, which is expected to increase their salary and pension. Recently, a report by Ambit Capital has come out, which has fueled speculation that the salary of government employees may increase by 30 to 34 percent, reports Dynamite News correspondent.

If this pay commission is implemented as per the already ongoing estimates, it can be implemented in 2026 or FY 2027. Due to this, there will be an additional financial burden of about Rs 1.8 lakh crore on the government.

New Pay Commission comes every 10 years

The central government constitutes a pay commission every ten years, in which the current salary structure of central employees and pensioners, including defense forces, is reviewed. In this process, amendments are made keeping in mind inflation and other economic aspects.

Experts believe that the commission may recommend an increase in dearness allowance (DA) along with basic salary in its recommendations. Also, pension will also be revised in accordance with the new pay structure.

New salary is decided by fitment factor

'Fitment factor' is used for salary revision of government employees. According to the report of Ambit Capital, this time this factor can be between 1.83 and 2.46. If this happens, the minimum salary can increase from Rs 32,940 to Rs 44,280. The fitment factor is the coefficient by which the new salary is decided by multiplying the existing basic pay.

How much will the salary increase?

For example, if the salary of an employee is Rs 50,000 and the fitment factor of 2.46 is applied, then his salary will increase to around Rs 1.23 lakh. On the other hand, if the factor of 1.83 is applied, then this salary will reach Rs 91,500.

Economy will benefit

It is believed that the Eighth Pay Commission will prove beneficial not only for the employees but also for the Indian economy. With the increase in salary, people will spend more on consumption, which will boost the pace of economic development.