8th Pay Commission Revised Salary Calculations – What This Means for Over 1 Crore Govt Employees and Pensioners: The 8th Central Pay Commission (CPC) is now the hot topic among central government employees and pensioners. As of July 2025, inflation has pushed the Dearness Allowance (DA) to 59%, triggering serious pressure from unions to form the 8th CPC early. If implemented, this commission will affect the salary, pension, and allowances of over 1 crore people across India.
What Is the 8th Pay Commission?
The Pay Commission is a body set up by the central government to review and revise the salary structure of its employees and retirees. These commissions are usually formed every 10 years. So far, India has seen 7 such pay commissions since independence.
The 8th CPC is expected to bring:
New salary structure (Pay Matrix Level 1 to 18)
Revised allowances (HRA, TA, etc.)
Updated pension and family pension formula
Higher fitment factor (used to calculate new basic pay)
Due to high inflation and DA crossing 50%, unions and staff associations are urging early formation—before 2029.
Expected Timeline Based on Past Commissions
Pay Commission
Year Set Up
Year Implemented
Chairperson
1st CPC
1946
1947
Srinivasa Varadachariar
2nd CPC
1957
1960
Jagannath Das
3rd CPC
1970
1973
Raghubar Dayal
4th CPC
1983
1986
P.N. Singhal
5th CPC
1994
1996
S. Ratnavel Pandian
6th CPC
2006
2008
B.N. Srikrishna
7th CPC
2014
2016
Justice A.K. Mathur
8th CPC
2025 (expected)
2029 (likely)
To Be Announced
What Is the Fitment Factor?
Fitment factor is the multiplier used to convert old basic pay into new basic pay.
In 7th CPC, the fitment factor was 2.57x. Unions are demanding 3.68x for 8th CPC, but financial experts say 2.86x is more realistic.
Example:
If your current basic pay is ₹35,400:
With 2.86x: New Basic = ₹1,01,244
Add DA (59%) = ₹59,733
Add HRA (30%) = ₹30,373
Total Gross = ₹1,91,350/month
DA and HRA as of July 2025
DA: 59% from 1 July 2025
HRA: Now 30% as DA crossed 50% (since Jan 2025)
DA revision happens twice a year, in Jan and July, based on AICPI (All India Consumer Price Index). Higher DA directly increases gross salary.
Revised Pay Matrix (Levels 1 to 18 — Based on 2.86x Fitment Factor, 59% DA, 30% HRA)
Family Pension After 8th Pay Commission (Expected Calculation)
If the 8th CPC is implemented with a fitment factor of 2.86x, family pensioners will also benefit — just like regular pensioners and employees.
How is Family Pension Calculated?
Under current CCS Pension Rules, family pension is calculated as:
30% of last drawn basic pay (for regular family pension),
or 50% of last drawn basic pay (in case of enhanced family pension, for 7 years from death while in service or post-retirement under certain conditions).
Example: Family Pension After 8th CPC Revision
Let’s assume the last pay drawn was ₹70,000.
Current System (Before 8th CPC)
30% of ₹70,000 = ₹21,000 (Regular family pension)
50% of ₹70,000 = ₹35,000 (Enhanced pension, if applicable)
Expected After 8th CPC (Fitment Factor = 2.86)
Revised Pay = ₹70,000 × 2.86 = ₹2,00,200
30% of ₹2,00,200 = ₹60,060
50% of ₹2,00,200 = ₹1,00,100 (Enhanced)
Summary for Family Pensioners:
Scenario
Amount Before
Amount After 8th CPC
Last Pay Drawn
₹70,000
₹2,00,200
Regular Family Pension (30%)
₹21,000
₹60,060
Enhanced Family Pension (50%)
₹35,000
₹1,00,100
These amounts will also be eligible for DA/DR and revised HRA components, wherever applicable.
The National Council (JCM) is the official body that represents Central Government employees. The “Staff Side” includes major unions like:
Confederation of Central Govt Employees & Workers
Bharatiya Mazdoor Sangh (BMS)
National Federation of Indian Railwaymen (NFIR)
They meet with government departments like DoPT and Ministry of Finance to push for employee welfare.
What Are Unions Demanding for 8th CPC?
As per latest memorandums submitted to the government, the demands are:
Early constitution of the 8th CPC (before 2026)
Merger of DA with Basic Pay (as DA crossed 50%)
Increase in minimum wage from ₹18,000 to ₹26,000 or more
New fitment factor: minimum 3.68x
Revise pension formulas and commutation slabs
Removal of NPS for central govt employees and restoration of old pension scheme (OPS)
Unions say rising inflation, high AICPI, and wage gap between private and public sectors make 8th CPC necessary now—not in 2029.
How DA (Dearness Allowance) Is Calculated – Very Simple Explanation
DA is increased every 6 months: January and July.
What is DA based on?
AICPI (IW) – All India Consumer Price Index for Industrial Workers
Data is published monthly by Labour Bureau (Govt of India)
Each month’s AICPI score is added to form a 12-month average, then compared to the base year index.
If prices of food, fuel, transport, clothing go up → AICPI rises → DA goes up.
Formula (Simplified for Understanding):
Let’s say base index = 261.42 If average AICPI = 398 Then DA = ((398 – 261.42) ÷ 261.42) × 100 ≈ 52.2%
That’s how DA is calculated every half-year.
Latest Status:
Jan 2025 DA = 55%
July 2025 DA (expected): 59%
This rise is due to increasing inflation in essentials, confirmed by AICPI crossing 139 points in May 2025
What If 8th CPC Is Delayed Till 2029?
Many are asking: “What if the government doesn’t announce it early?”
Here’s what may happen:
Salary Will Stay Stagnant:
Only DA increases will be given every 6 months. But base salary won’t change. Over time, real income falls behind inflation.
Pensions Will Remain Flat:
Basic pension hasn’t changed since 2016 (7th CPC). DR increases won’t match actual cost of living.
Loss of Arrears:
If CPC is announced later, arrears may not be backdated to 2026 or earlier, leading to loss of lakhs in pending dues.
Retirement Before 8th CPC:
Lakhs of employees may retire before 2029 and miss the benefits of higher pension and retirement corpus. This is especially worrying for those retiring between 2026–28.
AICPI trends show rising inflation due to global and domestic factors
Pressure from staff associations and unions has intensified
Election year approaching → Government may act in 2025–26
January 2026 Forecast – DA Hike and Salary Projections
By January 2026, central government employees are expected to receive another increase in Dearness Allowance (DA). Based on the current trend in the AICPI (All India Consumer Price Index for Industrial Workers), a 4% DA hike is highly likely.
DA Rate in January 2026 (Expected)
Current DA (July 2025): 59%
Expected DA (Jan 2026): 63%
Increase: 4%
This increase is due to the continuous rise in the AICPI index, which reflects growing prices of essential items like food, transport, and fuel.
Gross Salary Projections — Jan 2026 (If 8th CPC Not Yet Implemented)
If the 8th Pay Commission is not implemented by January 2026, employees will continue under the 7th CPC structure. Here’s what the gross salary might look like after the 4% DA hike.
Pay Level
Basic Pay
DA @ 63%
HRA @ 30%
Total (Jan 2026)
Level 1
₹18,000
₹11,340
₹5,400
₹34,740
Level 2
₹19,900
₹12,537
₹5,970
₹38,407
Level 3
₹21,700
₹13,671
₹6,510
₹41,881
Level 4
₹25,500
₹16,065
₹7,650
₹49,215
Level 5
₹29,200
₹18,396
₹8,760
₹56,356
Level 6
₹35,400
₹22,302
₹10,620
₹68,322
Level 7
₹44,900
₹28,287
₹13,470
₹86,657
Level 8
₹47,600
₹29,988
₹14,280
₹91,868
Level 9
₹53,100
₹33,453
₹15,930
₹1,02,483
Level 10
₹56,100
₹35,343
₹16,830
₹1,08,273
Level 11
₹67,700
₹42,651
₹20,310
₹1,30,661
Level 12
₹78,800
₹49,644
₹23,640
₹1,52,084
Level 13
₹1,23,100
₹77,553
₹36,930
₹2,37,583
Level 13A
₹1,31,100
₹82,593
₹39,330
₹2,53,023
Level 14
₹1,44,200
₹90,846
₹43,260
₹2,78,306
Level 15
₹1,82,200
₹1,14,786
₹54,660
₹3,51,646
Level 16
₹2,05,400
₹1,29,402
₹61,620
₹3,96,422
Level 17
₹2,25,000
₹1,41,750
₹67,500
₹4,34,250
Level 18
₹2,50,000
₹1,57,500
₹75,000
₹4,82,500
This chart assumes HRA remains at 30% (because DA crossed 50% in January 2025) and DA is hiked to 63% in January 2026.
How to calculate new salary after 8th Pay Commission?
To calculate your new salary under the 8th Pay Commission, use this formula: New Basic Pay = Old 7th CPC Basic × Fitment Factor If the recommended fitment factor is 2.86x, then: Example: If your current basic pay (as per 7th CPC) is ₹35,400 New Basic = ₹35,400 × 2.86 = ₹1,01,244 Add allowances: DA (expected @ 63%) = ₹1,01,244 × 63% = ₹63,783 HRA (30%) = ₹1,01,244 × 30% = ₹30,373 Total Gross Salary = Basic + DA + HRA = ₹1,95,400 approx
How to calculate revised pay scale?
The revised pay scale under the 8th Pay Commission is calculated by multiplying your existing basic pay (as per the 7th CPC) with the new fitment factor, which is currently expected to be 2.86. The formula is simple: New Pay = Existing Basic Pay × Fitment Factor. For example, if an employee’s current basic pay is ₹35,400 (Level 6), then the revised basic under the 8th CPC would be ₹35,400 × 2.86 = ₹1,01,244. Similarly, for someone at Level 10 drawing ₹56,100, the revised pay would become ₹56,100 × 2.86 = ₹1,60,446. These figures are based on projected fitment and may slightly vary based on the final CPC report. Once implemented, this new pay will fall under an updated Revised Pay Matrix, which ensures fair horizontal (annual increment) and vertical (promotional level) growth. Additionally, allowances such as DA (Dearness Allowance), HRA (House Rent Allowance), and TA (Transport Allowance) will be recalculated based on the new basic pay.
How much salary is in Pay Level 8?
Answer: Under 7th CPC: Basic pay starts at ₹47,600 Under 8th CPC (expected): ₹47,600 × 2.86 = ₹1,36,136 (new basic) Add DA @ 63% = ₹85,767 Add HRA @ 30% = ₹40,841 Total Salary = ₹2,62,744/month (approx)
What is the fitment ratio for 8th Pay Commission?
Official fitment ratio not declared yet. However: Demanded by unions = 3.68x Likely practical fitment factor = 2.86x This factor multiplies your 7th CPC basic to calculate 8th CPC basic.
How much salary is going to increase after 8th Pay Commission?
On average: Minimum increase in basic = 180% to 250% With DA + HRA, total increase = 1.8x to 2.2x of current gross For example: If current gross salary = ₹70,000 New gross = ₹1.4–1.6 lakh/month approx It depends on pay level, city (HRA class), and DA at implementation time.
How to calculate new salary after increase?
Use this formula: New Basic = Current Basic × Fitment FactorNew Gross = New Basic + DA + HRA + Other Allowances Example: Basic = ₹25,500 New = ₹72,930 Add DA @ 63% = ₹45,945 Add HRA @ 30% = ₹21,879 Total Gross = ₹1,40,754
How to calculate 8th Pay Commission PDF?
There is no official 8th CPC PDF yet. Once the Pay Commission is formed, the final report (usually 800–1000 pages) will be: Submitted to Ministry of Finance Published on: https://finmin.nic.in or https://doe.gov.in For now, use draft pay matrix tables and projection sheets.
How to calculate revised salary percentage?
% Increase = ((New Gross – Old Gross) / Old Gross) × 100 Example: Old Salary = ₹70,000 New Salary = ₹1,45,000 % Increase = (75,000 ÷ 70,000) × 100 = 107% increase
What is the formula for salary change?
There are 2 formulas: Basic Pay Revision: New Basic = Old Basic × Fitment Factor Total Salary: Total = Basic + DA + HRA + TA + Other Perks
Will DA become zero after 8th Pay Commission?
YES. As always. When new pay commission is implemented, DA is merged with basic. So DA becomes 0% temporarily, and starts fresh from next cycle. DA will then rise again every 6 months based on AICPI.
How much is Level 8 salary?
Under the 7th Pay Commission, Pay Level 8 starts with a basic pay of ₹47,600. With the proposed 8th Pay Commission and a likely fitment factor of 2.86, the revised basic pay is expected to be: ₹47,600 × 2.86 = ₹1,36,136 Now, let’s calculate the total gross salary including expected Dearness Allowance (DA) and House Rent Allowance (HRA): DA: At an expected rate of 63%, ₹1,36,136 × 63% = ₹85,767 HRA: At 30% (since DA crossed 50%), ₹1,36,136 × 30% = ₹40,841 Total Gross Salary = Basic + DA + HRA = ₹1,36,136 + ₹85,767 + ₹40,841 = ₹2,62,744 per month This figure does not include other allowances such as Transport Allowance (TA), Special Pay, Performance Incentives, or NPS deductions, which vary by post and department. So the actual gross may go even higher, and the in-hand salary may vary based on deductions like NPS, Income Tax, etc. In conclusion, under the 8th Pay Commission, a Level 8 employee’s monthly salary could cross ₹2.7 lakh, making it a significant jump from the current 7th CPC gross of around ₹1.1–1.3 lakh/month depending on city class and DA.
What is the salary of ₹4,200 Grade Pay?
In the 6th Pay Commission, the ₹4,200 Grade Pay was a very common slab — used for clerks, assistants, inspectors, and junior engineers. Under the 7th Pay Commission, this grade pay was upgraded to Pay Level 6. Basic Pay (7th CPC) = ₹35,400 Expected Fitment Factor (8th CPC) = 2.86 New Basic Pay (8th CPC) = ₹35,400 × 2.86 = ₹1,01,244 Now add allowances: DA @ 59% = ₹59,734 HRA @ 30% = ₹30,373 Gross Salary = ₹1,01,244 + ₹59,734 + ₹30,373 = ₹1,91,351/month Depending on the department (like Railways, Income Tax, SSC jobs), Transport Allowance and other perks will add further, taking it well above ₹2 lakh/month gross under 8th CPC.
How to calculate salary fitment?
Salary Fitment is how your old basic is revised under the new pay commission. It’s based on the fitment factor, which is a multiplication number applied across levels. Formula: New Basic Pay = Old Basic × Fitment Factor Example 1 (Level 1): 7th CPC Basic = ₹18,000 Fitment Factor = 2.86 New Basic = ₹18,000 × 2.86 = ₹51,480 Example 2 (Level 6): ₹35,400 × 2.86 = ₹1,01,244 This new basic is then used to calculate DA, HRA, TA, and all allowances.
What is the fitment factor for 8th Pay Commission (Quora & Expert View)?
There are three major fitment factor figures being discussed widely among experts, employee unions, and on platforms like Quora. The official fitment factor under the 7th Pay Commission was 2.57x, which multiplied the 6th CPC basic pay to arrive at the 7th CPC pay. Now for the 8th Pay Commission, staff unions and federations like NJCA, BMS, and Confederation are demanding a much higher fitment factor of 3.68x, arguing that it reflects the true increase in cost of living, inflation, and stagnant pay structure over the last decade. However, most experts and economists suggest a more realistic and fiscally viable fitment factor of 2.86x, which aligns with current DA (Dearness Allowance) levels, AICPI trends, and inflation data. This 2.86x factor is considered the most likely to be approved by the Finance Ministry when the 8th Pay Commission is formally constituted. In summary, while Quora and social discussions include all these numbers, 2.86x is currently the most probable and balanced figure expected to be accepted for calculating revised salaries and pensions.
What is DA (Dearness Allowance) in salary?
DA (Dearness Allowance) is a government allowance added to your basic pay to protect your salary from inflation. It is revised twice a year: January and July Based on the AICPI Index (cost of essential goods like food, clothing, fuel) As of July 2025, DA has reached 59% Likely to reach 63% in January 2026 After every Pay Commission, DA is reset to zero, and merged into the new basic pay. So after the 8th CPC, DA will again start from 0%.
How much percentage salary increases in the 8th Pay Commission?
Let’s look at past trends: 5th CPC (1996) ~ 40% 6th CPC (2008) ~ 40–45% 7th CPC (2016) ~ 23.5% (lower than previous) Now based on current projections: Fitment Factor of 2.86x DA already above 59% Revised HRA and allowances Expected Hike = 40%–60% in gross pay, depending on level, location, and post. Lower pay levels (Level 1–6) may benefit more in terms of percentage growth.
What is the formula for calculating salary?
The total salary of a government employee is made up of: Gross Salary = Basic Pay + DA + HRA + TA + Other Allowances Net Salary = Gross Salary – (NPS Contribution + Income Tax + Deductions) Example – Level 7 Officer under 8th CPC: Basic: ₹1,28,414 DA @ 59%: ₹75,763 HRA @ 30%: ₹38,524 TA: ₹7,200 (approx.) Gross Salary = ₹1,28,414 + ₹75,763 + ₹38,524 + ₹7,200 = ₹2,49,901/month Deductions: ₹15,000–20,000 (NPS, Tax) In-hand: ₹2.3 lakh/month approx.
How to calculate revised percentage increase in salary?
Use this formula: % Increase = ((New Salary – Old Salary) / Old Salary) × 100 Example: Old Gross = ₹60,000 New Gross = ₹1,20,000 % Increase = ((₹1,20,000 – ₹60,000) / ₹60,000) × 100 = 100% increase This is common for lower pay levels under 8th CPC with HRA, DA jumps, and fitment hikes.
Final Summary
So, here’s the final wrap-up:
From January 2026, employees may get another 4% DA hike, taking it to 63%
This means a higher take-home salary even before 8th CPC is implemented
No change in base salary or pension unless 8th CPC is officially formed
Fitment factor is still under discussion — unions want 3.68x, but the govt may allow only 2.86x
Pressure is mounting — with high DA, HRA at 30%, and elections ahead, the 8th CPC could be announced anytime between late 2025 and early 2026
If you’re a central government employee, now is the time to stay alert and prepared. Every 6-month DA hike adds something, but the real salary jump will come only with the 8th Pay Commission.
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