The 8th Pay Commission approved by the Union Cabinet led by Prime Minister Narendra Modi is expected to come into force from January 1 2026. Central government employees are closely watching the changes especially possible increases in salaries pensions and the fitment factor. The new Pay Commission will revise salaries allowances and pensions for both serving and retired central government employees. It will also rework the Dearness Allowance (DA) to account for inflation.
So far the government has not announced the exact percentage of pay hikes under the 8th Pay Commission. However media reports suggest that based on the proposed fitment factor the basic salary of a central government employee could increase from Rs. 18000 to around Rs. 51480.
Earlier reports said there are about 50 lakh central government employees including defence personnel and nearly 65 lakh retired central government pensioners including those from the defence services.
Wondering how much your salary may rise under the 8th Central Pay Commission (8th CPC)?
This will help you get a rough idea of what your revised Basic Pay and Gross Salary could look like from January 1 2026 if the 8th CPC is implemented from that date.
How the estimate is calculated
When a new Pay Commission is introduced the first step is usually to merge the existing Dearness Allowance (DA) with the Basic Pay. For this calculation the following assumptions are used:
The current DA is taken as 61 per cent and it is assumed to be fully merged into Basic Pay on 1.1.2026
Under the 7th Pay Commission employees received an actual pay increase of around 14 per cent over and above the DA merger
The same 14 per cent real increase is assumed for the 8th CPC
When these two factors are combined i.e. DA merger and real increase the estimated fitment factor comes to about 1.84.
What the calculator shows
After you enter your current Basic Pay along with your Pay Level and city category the calculator gives you:
Your estimated new Basic Pay as on 1 January 2026
The increase in Basic Pay
Your estimated gross salary on the implementation date assuming DA is reset to 0%
Important note
This calculation is only a rough estimate. The actual recommendations of the 8th Pay Commission may be different once the official report is released. However this tool offers a reasonable idea of how salaries might be revised if the 8th CPC follows a pattern similar to the 7th Pay Commission.
8th CPC Pay Estimate Calculator
Assumptions used
The existing Dearness Allowance (DA) is merged with Basic Pay on 1 January 2026.(DA assumed at 61% for this calculation.)
A real pay increase of about 14% is assumed similar to what was given under the 7th Pay Commission.This results in an estimated fitment factor of 1.84.
On the implementation date (1.1.2026) DA is reset to 0% on the new Basic Pay.
House Rent Allowance (HRA) is calculated at: 24% for X Class cities 16% for Y Class cities 8% for Z Class cities
Transport Allowance (TA) is calculated as per the Pay Level slabs and higher TA eligibility (as per official O.M.). DA at 61% is added to TA to give an approximate figure.
The new Basic Pay is rounded up to the next Rs. 100 stage.
As per previous media reports the current Pay Commission used a fitment factor of 2.57; however this does not necessarily mean that salaries will increase by the same amount.
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