8th Pay Calculator

8th Pay Commission 2026 – Complete Salary Structure, Hike Calculator & State-Wise Implementation Guide

Cabinet Approves 8th Pay Commission Terms of Reference

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Terms of Reference for the 8th Central Pay Commission on October 28, 2025. The commission will comprise one Chairperson, one part-time Member, and one Member-Secretary, tasked with submitting recommendations within 18 months of its constitution.

The commission’s recommendations are expected to lead to salary increases, with a proposed fitment factor of 2.28 and a projected Dearness Allowance of 70% by 2026, potentially increasing the minimum basic pay from ₹18,000 to ₹41,000.

What is the 8th Pay Commission?

The 8th Pay Commission is a government body established to review and recommend changes to the salary structure, allowances, and pension benefits of central government employees and pensioners. The commission is expected to be implemented by January 2026, with the aim to revise the salaries of over 50 lakh central government employees and 60 lakh pensioners.

Key Highlights

• Beneficiaries: 50 lakh central government employees + 69 lakh pensioners = 1.19 crore people
• Implementation Date: January 1, 2026 (retrospective application)
• Expected Salary Hike: 30-34% increase across all levels
• Fitment Factor Range: 1.92 to 3.00 (most likely 2.28 to 2.86)
• Report Submission: Within 18 months of commission formation

Understanding the Fitment Factor

The fitment factor in the 8th Pay Commission refers to a multiplier used to calculate the revised basic pay of central government employees and pensioners. This is the single most important number that determines your salary hike.

Fitment Factor Scenarios

Note: Current minimum basic pay under 7th CPC is ₹18,000

8th Pay Commission Salary Structure

Complete Pay Matrix Chart (Level-wise)

IAS and IPS Officer Salaries Under 8th Pay Commission

Entry-Level Officers (Level 10)

When an IAS officer joins, they are given the post of an Assistant Collector or a Sub-Divisional Magistrate (SDM). Similarly, when an IPS officer joins, they are given the post of an Assistant Superintendent of Police (ASP). Both are Level 10 employees with ₹56,100 – ₹1,77,500 basic.

Projected Salary at Level 10 (IAS/IPS Entry)

At 2.28x Fitment Factor:

• Revised Basic Pay: ₹1,27,908
• HRA (18% Y-City): ₹23,023
• TA: ₹7,200
• Gross Salary: ₹1,58,131
• NPS (10%): -₹12,791
• CGHS: -₹650
• Net In-Hand: ₹1,44,690 per month

Senior IAS/IPS Officers

Among IAS officers, the District Magistrate (DM) is a pay level ₹78,800, Special Secretary is pay level ₹1,18,500, and Principal Secretary is pay level ₹1,82,200. Among IPS officers, SP/DCP is pay level ₹78,800, SSP/DCP in major cities is pay level ₹1,18,500, DIG is pay level ₹1,31,100, and IG is pay level ₹1,44,200.

District Magistrate / Superintendent of Police (Level 12)

• Current Basic: ₹78,800
• Revised Basic (2.28x): ₹1,79,664
• Expected In-Hand: ₹2,20,000 – ₹2,40,000

Inspector General (Level 14)

• Current Basic: ₹1,44,200
• Revised Basic (2.28x): ₹3,28,776
• Expected In-Hand: ₹3,90,000 – ₹4,20,000

Cabinet Secretary (Level 18)

• Current Basic: ₹2,50,000
• Revised Basic (2.28x): ₹5,70,000
• Revised Basic (2.86x): ₹7,15,000
• Expected In-Hand: ₹6,50,000 – ₹8,00,000

State Government Implementation

Delhi Government Employees

Delhi typically adopts central pay commission recommendations with minimal modifications. Expected implementation timeline: 6-12 months after central implementation (mid-2026 to late-2026).

Expected Changes for Delhi Govt Employees:

• Same fitment factor as central (2.28 to 2.86)
• Higher HRA due to metro city status (27%)
• Additional allowances for NCR posting
• Estimated salary hike: 35-40%

Uttar Pradesh Government Employees

Uttar Pradesh delayed the 7th Pay Commission until 2021, causing employee protests. UP may take 2-3 years to implement 8th CPC recommendations.

Expected Timeline for UP:

• Notification: Late 2027 or early 2028
• Implementation: FY 2028-29
• Arrears: Payable from January 1, 2026

Bihar Government Employees

Reports indicate that the fitment factor under the 8th Pay Commission could increase to 2.86, leading to a 186% rise in minimum basic salary. If Bihar follows this model, every government employee in the state will experience a significant boost in earnings.

Bihar Specific Projections:

• Implementation delay: 2-3 years after central
• Expected fitment factor: 2.28 to 2.57
• Minimum salary could jump from ₹18,000 to ₹46,260
• Estimated implementation: 2028

Jharkhand Government Employees

Jharkhand follows central pay structures with state-specific modifications:

• Expected implementation: 2027-2028
• Similar fitment factors as Bihar
• Focus on tribal area allowances
• Enhanced benefits for rural postings

Chandigarh (UT) Government

As a Union Territory, Chandigarh closely follows central government pay scales:

• Quick implementation: 6-12 months lag
• Full adoption of central recommendations
• Metro city HRA benefits (27%)
• Expected timeline: Mid-2026

Jammu & Kashmir (UT) Government

Post-Article 370 abrogation, J&K follows central structures:

• Direct central govt pay parity
• Special allowances for conflict zones
• Implementation: Aligned with central timeline
• Expected date: January-March 2026

Assam Government Employees

Assam has historically implemented pay commissions with 2-3 year delays:

• State-specific committee formation required
• Expected implementation: 2027-2028
• Modifications based on state finances
• Tea garden worker special provisions

Manipur Government Employees

Manipur typically follows NE state patterns:

• Implementation lag: 2-4 years
• Special allowances for hilly terrain
• NE special package considerations
• Expected timeline: 2028-2029

Detailed Allowance Structure

Dearness Allowance (DA)

A key highlight of the 8th Pay Commission is the proposed Fitment Factor of 2.28, increasing the minimum wage by 34.1%. The Dearness Allowance (DA), projected to reach 70% by January 2026, will be merged into the base salary for revised calculations.

DA Merger Impact:

• Current DA: 70% of basic pay (expected by Jan 2026)
• After 8th CPC: DA merged with basic pay
• New DA starts from: 0%
• Future increments: 2% every 6 months based on AICPI

Example Calculation:

• Current Basic (7th CPC): ₹50,000
• Current DA (70%): ₹35,000
• Total: ₹85,000
• 8th CPC Basic (2.28x): ₹1,14,000 (no separate DA initially)

House Rent Allowance (HRA)

Expected HRA rates under 8th Pay Commission:

Major X-Class Cities: Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune

Transport Allowance (TA)

Current TA rates expected to increase by 20-25%:

Other Allowances

1. Children Education Allowance: Expected to increase from ₹2,250 to ₹3,000 per child
2. Medical Allowance: Enhanced coverage under CGHS
3. Leave Travel Concession (LTC): Increased limits
4. Special Allowances: Field area, high altitude, hard area allowances to be revised

Pension Revisions Under 8th Pay Commission

The minimum pension, set at ₹9,000 under the 7th Pay Commission, is expected to increase significantly. Applying the proposed fitment factor of 2.28, the minimum pension could rise to approximately ₹20,500.

Pension Calculation

Current Pension Formula (7th CPC):

• Pension = 50% of last drawn basic pay
• Minimum pension: ₹9,000
• Maximum pension: ₹1,25,000

Expected 8th CPC Pension:

• Same 50% formula applies
• Minimum pension: ₹20,500 (at 2.28x) to ₹25,740 (at 2.86x)
• Maximum pension: Proportionately increased

Family Pension:

• Normal rate: 30% of last drawn basic pay
• Enhanced rate (first 10 years): 50% of last drawn basic pay
• Minimum family pension: Expected to rise to ₹12,300

Dearness Relief (DR) for Pensioners

DR follows the same pattern as DA:

• Will be merged with pension on January 1, 2026
• Restarts from 0% after merger
• Increases biannually based on AICPI

Pay Matrix Level 8 in Detail

Since “pay level 8 salary” is a focus keyword, here’s comprehensive coverage:

Current Structure (7th CPC)

• Basic Pay Range: ₹47,600 – ₹1,51,100
• Entry Pay: ₹47,600
• Maximum Pay: ₹1,51,100 (after 40 years)
• Annual Increment: 3% of basic pay

Revised Structure (8th CPC – Expected)

At 2.28x Fitment Factor:

• Entry Pay: ₹1,08,528
• Maximum Pay: ₹3,44,508
• Annual Increment: 3% (continued)

At 2.86x Fitment Factor:

• Entry Pay: ₹1,36,136
• Maximum Pay: ₹4,32,146

Level 8 In-Hand Salary Breakdown

Current 7th CPC (with 70% DA):

• Basic Pay: ₹47,600
• DA (70%): ₹33,320
• HRA (18% Y-City): ₹8,568
• TA: ₹3,600
• Gross: ₹93,088
• Deductions: ₹5,410
• Net In-Hand: ₹87,678

8th CPC at 2.28x (DA merged, 0% new DA):

• Basic Pay: ₹1,08,528
• DA: ₹0
• HRA (18%): ₹19,535
• TA: ₹3,600
• Gross: ₹1,31,663
• Deductions: ₹11,503
• Net In-Hand: ₹1,20,160

Salary Increase: 37% gross increase

Pay Level 8 Grade Pay

Under the old system (before 7th CPC), Level 8 corresponded to:

• Grade Pay: ₹4,800
• Pay Band: PB-2 (₹9,300 – ₹34,800)
• This has now been subsumed into the pay level system

Typical Designations at Level 8

• Private Secretary
• Senior Accountant
• Senior Auditor
• Inspector (Various Departments)
• Upper Division Clerk (Senior)

How to Calculate Your 8th Pay Commission Salary

Step-by-Step Calculation Method

Step 1: Determine Your Current Basic Pay

• Check your salary slip for basic pay under 7th CPC
• Note your pay level (1-18)

Step 2: Apply Fitment Factor

Revised Basic Pay = Current Basic Pay × Fitment Factor

Example: ₹50,000 × 2.28 = ₹1,14,000

Step 3: Calculate DA

• Initially 0% after merger
• Future increments will be on new basic pay

Step 4: Calculate HRA

HRA = Revised Basic Pay × HRA Percentage

For Y-City (18%): ₹1,14,000 × 0.18 = ₹20,520

Step 5: Add Transport Allowance

• Based on your pay level
• Refer to TA chart above

Step 6: Calculate Gross Salary

Gross = Basic + DA + HRA + TA + Other Allowances

Step 7: Apply Deductions

• NPS: 10% of (Basic + DA)
• CGHS: ₹500-₹1,000 based on pay level
• Income Tax: As per new tax regime

Step 8: Get Net In-Hand Salary

Net Salary = Gross Salary - Total Deductions

Expected Timeline and Implementation

Phase 1: Commission Formation (Current)

• ✅ October 28, 2025: Terms of Reference approved
• November 2025: Chairperson and members appointed
• December 2025: Commission begins work

Phase 2: Report Preparation (2026)

• Q1-Q2 2026: Data collection and consultations
• Q3-Q4 2026: Draft recommendations
• Mid-2027: Final report submission (18-month deadline)

Phase 3: Government Review (2027)

• 6-12 months: Cabinet review and modifications
• Parliamentary approval: Required for implementation
• Budget allocation: FY 2027-28 or 2028-29

Phase 4: Implementation (2026 onwards)

• Effective Date: January 1, 2026 (retrospective)
• First Payment: Likely in 2027 or 2028
• Arrears Payment: All dues from Jan 1, 2026 will be paid

Financial Impact

Cost to Government

The 8th Pay Commission, implemented once every 10 years, revises the salaries of about 50 lakh employees and over 65 lakh pensioners, with an estimated cost to the government of around ₹1.8 lakh crore.

Annual Financial Burden:

• Central Government: ₹1.80 lakh crore
• State Governments: ₹2.50-3.00 lakh crore (combined)
• Total Impact: ₹4.30-4.80 lakh crore annually

Economic Impact

Positive Effects:

• Increased consumer spending
• Boost to real estate and automobile sectors
• Higher tax collection
• Improved quality of life for 1.2 crore families

Challenges:

• Fiscal deficit pressure
• State government budget constraints
• Inflation concerns
• Revenue mobilization needs

Comparison: 7th vs 8th Pay Commission

FAQs: 8th Pay Commission

Q1: When will 8th Pay Commission be implemented?

Answer: The Union Cabinet approved the Terms of Reference for the 8th Pay Commission, aiming to submit its report within 18 months, with new pay scales and pension revisions likely effective from January 1, 2026. However, actual salary payments will begin after the government approves recommendations (likely 2027-2028).

Q2: What is the expected fitment factor?

Answer: The expected fitment factor ranges from 2.28 to 2.86, with 2.28 being the most discussed figure among experts and employee unions.

Q3: Will DA be merged with basic pay?

Answer: Yes, the accumulated DA (expected to be 70% by January 2026) will be merged with the basic pay under the 8th Pay Commission, and new DA will start from 0%.

Q4: How will this affect state government employees?

Answer: State governments typically adopt central pay commission recommendations with 1-4 years delay. Implementation timelines vary by state financial health.

Q5: What about pensioners?

Answer: Pensioners will see similar benefits with the same fitment factor applied to their pension. Minimum pension is expected to rise from ₹9,000 to ₹20,500.

Q6: Will NPS contributions increase?

Answer: Yes, since NPS is calculated as 10% of (Basic + DA), the higher revised basic pay will result in higher NPS contributions and consequently higher retirement corpus.

Q7: How is pay scale 8 salary calculated?

Answer: For Level 8, multiply the current basic pay (₹47,600) by the fitment factor. At 2.28x, the revised basic becomes ₹1,08,528. Add HRA, TA, and other allowances to get gross salary.

Q8: What is pay matrix under 8th CPC?

Answer: The pay matrix structure will continue with 18 levels, but with revised pay amounts. Each level will have entry pay calculated using the fitment factor on 7th CPC amounts.

Q9: When will arrears be paid?

Answer: Arrears from January 1, 2026, till the actual implementation date will be paid in lump sum or installments once the commission’s recommendations are approved.

Q10: Will there be changes to allowances?

Answer: Yes, HRA, TA, and other allowances will be revised upwards. New allowances may also be introduced based on commission recommendations.

Key Takeaways

1. Historic Approval: Cabinet approved ToR on October 28, 2025
2. Massive Beneficiary Base: 1.19 crore employees and pensioners
3. Significant Hike: 30-40% overall salary increase expected
4. Fitment Factor: 2.28 to 2.86 range most likely
5. DA Merger: 70% DA will merge with basic pay
6. Retrospective Effect: From January 1, 2026
7. Timeline: Report in 18 months, implementation by 2027-28
8. State Impact: 2-3 year lag for most states
9. IAS/IPS: Entry level could see ₹1.44 lakh in-hand salary
10. Cost: ₹1.8 lakh crore annual burden on exchequer

Conclusion

The 8th Pay Commission represents a landmark revision in government employee compensation after a decade. The commission will make its recommendations within 18 months of the date of its constitution and may consider sending interim reports on any of the matters as and when the recommendations are finalized.

While the exact fitment factor and allowance rates are yet to be officially announced, all indications point toward a substantial salary increase that will significantly improve the financial well-being of government employees and pensioners across India.

Stay Updated: Follow official government notifications and announcements from the Department of Expenditure, Ministry of Finance, for the latest and most accurate information about the 8th Pay Commission.

Disclaimer: All salary projections and calculations in this article are based on expected parameters and historical trends. Actual implementation may differ based on official government notifications. This is an informational resource and not official government communication.

Last Updated: October 28, 2025