8th Pay Commission Set To Boost Salaries Across Levels 1 To 18

Updated: December 29, 2025 15:34

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The 8th Pay Commission, effective January 1, 2026, will revise salaries and pensions for central government employees and officers from Level 1 to Level 18. With fitment factors expected between 1.92 and 2.57, lakhs of employees and pensioners are likely to see significant hikes in pay and allowances.

The Union Cabinet has approved the formation of the 8th Central Pay Commission (CPC), which will recommend new salary structures for central government employees and pensioners. The commission’s recommendations, expected to take effect from January 1, 2026, will replace the 7th Pay Commission framework that concludes on December 31, 2025.

Key highlights from the announcement include

The 8th Pay Commission will cover all 18 levels of central government employees, from Group D staff at Level 1 to the Cabinet Secretary at Level 18.
Salary hikes will depend on the fitment factor, which is expected to range between 1.92 and 2.57.
At Level 1, employees currently earning a basic pay of Rs 18,000 could see increases to Rs 34,560 at a 1.92 fitment factor, Rs 38,700 at 2.15, and Rs 46,260 at 2.57.
At Level 18, the Cabinet Secretary’s current basic pay of Rs 2.5 lakh could rise to Rs 4.8 lakh at 1.92, Rs 5.37 lakh at 2.15, and Rs 6.42 lakh at 2.57.
The commission will also review pensions, allowances, and service conditions to ensure parity and fiscal prudence.
Experts note that the hike will provide relief to employees amid rising inflation and cost of living.
The recommendations are expected to benefit millions of employees and pensioners, boosting consumption and economic activity.
The government has emphasized balancing fiscal responsibility with employee welfare while finalizing the pay matrix.
Discussions around the fitment factor remain ongoing, with final figures to be announced after the commission submits its report.
The new pay structure is expected to enhance morale and productivity across government departments.

The 8th Pay Commission represents a major financial reform for India’s central government workforce. By revising salaries, pensions, and allowances, the commission aims to ensure fair compensation while maintaining fiscal discipline. The changes will impact millions of households, reinforcing the government’s commitment to employee welfare and economic stability.

Sources: Livemint, Economic Times, Times Now, India Today, Vajiram & Ravi

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