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8th Pay Commission latest news: 2026 is not just a new year for central employees, but it's going to be a turning point in their salaries. The answers to questions that have been circulating for months regarding the 8th Pay Commission are now gradually becoming clear. Find out how much the basic salary will be and how much the benefits will be.

The whole story at a glance
After the 8th Pay Commission, the minimum basic salary could increase from ₹34,560 to ₹37,440.
The Fitment Factor is most likely to be between 1.92 and 2.08.
DA will resume at 0% once the new pay is implemented.
HRA, TA, PF, Gratuity, and Pension—everything will be fixed anew.
Level-1 to Level-6 employees will benefit the most.

Why is such a huge salary jump expected in the 8th Pay Commission?

The simple answer to this question is: DA will exceed 60%.

Whenever a new Pay Commission is introduced, the associated DA is "adjusted" to the new basic salary.

Today, the DA under the 7th Pay Commission is approximately 60%.
This means that the current basic salary has already been increased by 1.60 times.

This is where the minimum floor for the 8th CPC Fitment Factor is determined.

How did the DA pave the way for the fitment factor?
Status Data
7th CPC Minimum Basic ₹18,000
Current DA (January 2026 base) 60% (estimated)
Effective Pay Rate ₹28,800
Potential Fitment Floor Above 1.60
This means that a fitment factor below 1.60 is mathematically impossible.

What is the new Minimum Basic Salary? Complete Calculation
Now let's get straight to the calculations.

Calculation based on the Fitment Factor

₹18,000 × 1.92 = ₹34,560
₹18,000 × 2.08 = ₹37,440
This is why the range of ₹34,560-₹37,440 is considered the most realistic.

What is the Fitment Factor, and how does it increase salary?
The Fitment Factor is a multiplier that shifts your entire basic salary to the new structure.

Example:

If your current basic salary is ₹30,000:

At 1.92 = ₹57,600
At 2.08 = ₹62,400
And this is where the real benefit begins, because:

HRA is applied as a percentage of the basic salary.

TA is linked to DA.

PF and Gratuity increase automatically.
7th CPC vs 8th CPC: Simple and clear difference.
Pay Commission Fitment Factor Minimum Basic
6th CPC 1.86 = ₹7,000
7th CPC 2.57 = ₹18,000
8th CPC (Expected) 1.92-2.08 = ₹34,560-₹37,440
The 7th CPC factor was higher, but the DA was lower.
The 8th CPC already has a higher DA, so the math is different.
Also read: Good news! Central government employees' DA finalized, effective January 1st, to be announced in March; total reaches 60%; what will change next?

What will happen to DA? Will 60% remain?
No, this is the most significant change.

New Pay Commission implemented
Old DA → adjusted to basic
DA reverts to 0%
After this:

DA will increase every six months based on CPI-IW.

How much will HRA and TA be affected?
HRA formula (as it stands now):

X City: 27%
Y City: 18%
Z City: 9%
If the basic salary is ₹34,560:

X City HRA: ₹9,331
Y City HRA: ₹6,220
Z City HRA: ₹3,110
If the basic salary is ₹37,440, the HRA will increase further, and the TA will also increase with each stage of DA.

Not just salary, your entire financial life will change.
The 8th Pay Commission will impact:

PF and NPS contributions
Gratuity limit
Pension re-fixation
Medical and LTC
Children Education Allowance
That means both Take-Home + Retirement are strengthened.

What does this mean for you?

If you are in Level 1 to Level 6 → The biggest benefit
All allowances will automatically increase based on the new basic.
The initial years of the DA reset may seem slow, but salaries will increase rapidly in the next 2-3 years.
Pensioners' pensions will also be re-fixed based on the new basic.

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