Big Salary Hike Coming for Government Employees: 8th Pay Commission Approved

There’s good news for central government employees and pensioners. The Union Cabinet has approved the 8th Pay Commission to revise their salaries and pensions. Union Minister Ashwini Vaishnaw announced the decision on Thursday, 16 January. While the Cabinet has given the green signal, the exact date for setting up the commission has not been shared yet.

This move could lead to a major salary hike for millions of government employees. The new pay structure is expected to be implemented from January 1, 2026. The 8th Pay Commission will look into revising salaries, pensions, and other allowances.

One of the key changes expected is the revision of the fitment factor, which is used to calculate new basic pay. Currently, it stands at 2.57. Reports suggest it may be revised to between 1.92 and 2.86. For example, if an employee’s basic salary is ₹18,000 now, it could increase to between ₹53,568 and ₹79,794, depending on the final fitment rate.

There is also talk about merging the Dearness Allowance (DA) with the basic salary. At present, employees get 55% DA. So, someone with a basic salary of ₹18,000 is earning ₹27,900 including DA. If DA is merged into the basic pay, the total salary will go up further.

This decision is expected to bring better financial stability and improve the standard of living for government employees and pensioners across the country.