8th Pay Commission: New salaries will be decided using this one 'formula', and this is how much money you will now receive..

8th Pay Commission: Over 5 million employees and 6.9 million pensioners working under the central government are currently focused on a single piece of news. The question on everyone's mind is how much their take-home salary will increase after the implementation of the 8th Pay Commission's recommendations. This entire calculation hinges on the "fitment factor." Let's understand what this commission is doing and how the calculations for your salary increase will work.

The Magic Number That Will Change Your Salary Slip
First, it's important to understand the primary basis for your salary increase. This is technically known as the "fitment factor." Simply put, it's a multiplier that multiplies your current basic salary or pension to determine your new salary. The Commission will submit its recommendations to the government, after which this factor will be finalized upon approval by the Union Cabinet.

Media reports and analysts believe that this time, the fitment factor in the 8th Pay Commission could be between 1.86 and 2.57. This is the figure that will determine whether your salary will receive a modest increase or a substantial jump.

When will the new system be implemented?
This commission, headed by retired Justice Ranjana Desai, is working diligently. The commission's mandate is not only to increase salaries but also to review the basic structure, allowances, pensions, and post-retirement benefits. The government issued the Commission's Terms of Reference on October 28, 2025.

According to the rules, the commission has been given approximately 18 months to submit its detailed report. This means that the report will reach the government by April 2027. After the report is submitted, the government typically takes six months to develop a framework for implementation. Based on this timeline, the new salary and pension system is highly likely to be implemented by the end of 2027 or early 2028. However, Minister of State for Finance Pankaj Chaudhary has clarified that the government will decide on the date and funding later.

How will the basic pay increase from Rs 18,000 to Rs 44,000?
Now let's turn to the most important issue—how much will the salary increase be? A look at the data from Ambit Capital's report makes the situation fairly clear. If the government sets the fitment factor at 1.83, the current minimum basic salary will increase from Rs 18,000 to approximately Rs 32,940. If this factor is increased to 2.46, the same basic salary could reach Rs 44,280.

It is estimated that employees could receive a total actual salary increase (including basic and DA) of 14% to 54%. However, experts believe that expectations of a massive 54% increase should be tempered, as it would place a significant financial burden on the government treasury.

Know how much your salary will increase based on your rank
If we include components like HRA, transport allowance, and NPS, the salary picture for different grade pays could be something like this:

1900 Grade Pay: If the fitment factor is 1.92, the net salary will be approximately ₹65,512. However, if the fitment factor is 2.57, it could go up to ₹86,556.
4600 Grade Pay: For officers at this level, the salary is estimated to be ₹131,213 at a 1.92 factor and ₹174,636 at a 2.57 factor.
8900 Grade Pay: At the senior level, the net salary can reach Rs 2,17,988 at a factor of 1.92 and around Rs 2,89,569 at a factor of 2.57.

Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.