8th Pay Commission: The salary structure for central government employees in India has evolved significantly over the years — from Rs 55 per month in 1946 to Rs 18,000 per month currently. Various pay panels recommended salary and pension hikes periodically, taking into consideration various economic factors from time to time.
Each Pay Commission aimed to balance the interests of employees with the financial prudence of the government, leading to changes in salary scales, allowances, and overall benefits.
With the recent announcement of the 8th Pay Commission, slated for implementation from January 1, 2026, it is worth revisiting the journey of salary revisions from the 1st to the 7th Pay Commission.
According to reports, under the 8th Pay Commission, the basic pay of central government employees will increase from Rs 18,000 per month to over Rs 51,000, based on a new fitment factor. Here’s a look at the seven Pay Commissions so far and the salaries recommended by them:
1st Pay Commission implementation year: 1947
Key features:
-Focused on improving living standards for employees.
-Minimum salary was fixed at Rs 55 per month.
-Emphasis on equitable pay structure.
-Ratio of the highest salary to the minimum salary was 1:41.
Impact:
Although the recommendations addressed post-independence challenges, they highlighted the need for a better salary structure for lower-income groups.
Also read: 8th Pay Commission: Govt to remove a number of allowances applicable to employees, pensioners?
2nd Pay Commission implementation year: 1959
Key features:
-Minimum salary raised to Rs 80 per month.
-Focus on reducing disparities in wages.
-Recommended provisions for family allowances and retirement benefits.
Impact:
The changes improved financial security for employees, reflecting the growing economic challenges of the 1950s.
3rd Pay Commission implementation year: 1973
Key features:
-Minimum salary increased to Rs 185 per month.
-Addressed cost of living by introducing dearness allowance (DA) as a relief against inflation.
-Focused on pay parity between various groups of employees.
Impact:
Introduction of DA was a game-changer, ensuring that employees’ salaries were adjusted in line with inflation rates.
4th Pay Commission implementation year: 1986
Key features:
-Minimum salary increased to Rs 750 per month.
-First attempt at comprehensively restructuring pay scales.
-Recommendations for increasing housing and travel allowances.
Impact:
The substantial pay hike addressed inflation and improved employee satisfaction. However, the implementation was criticized for delays.
5th Pay Commission implementation year: 1997
Key features:
-Minimum salary raised to Rs 2,550 per month.
-Recommended merging 50% of DA with basic pay for better financial stability.
-Focused on employee welfare schemes.
Impact:
A significant increase in salaries improved employees’ purchasing power. However, the recommendations increased the government’s financial strain.
6th Pay Commission implementation year: 2008
Key features:
-Minimum salary increased to Rs 7,000 per month.
-Introduction of Pay Band and Grade Pay system for streamlining salary structures.
-Emphasis on performance-based incentives.
Impact:
The introduction of the Pay Band system simplified salary structures and provided clarity on career progression. Despite criticism of delayed implementation, it was largely seen as employee-friendly.
Also read: 8th Pay Commission: Govt employees’ basic salary may not be doubled as expected – Know why!
7th Pay Commission implementation year: 2016
Key features:
-Minimum salary raised to Rs 18,000 per month.
-Removal of Pay Band and Grade Pay system, replaced by Pay Matrix.
-DA rates to be revised biannually.
-Recommendations for improving pension benefits.
8th Pay Commission salary increase:
How much is the salary hike expected under 8th Pay Commission?
Under the 7th Pay Commission, the fitment factor was set at 2.57, which increased the minimum basic pay from Rs 7,000 to Rs 18,000. The fitment factor is a multiplier applied to the current basic pay to calculate the new salary under the revised Pay Matrix.
For the 8th Pay Commission, it is widely expected that the fitment factor will rise to 2.86, potentially increasing the minimum basic pay to Rs 51,480, a jump of 186% over the current Rs 18,000.
Experts, however, are of the view that the actual salary hike might be slightly lower due to various deductions and other adjustments. Also, the government may settle for a fitment factor much lower than the expected one by employees and pensioners.
Below is a table which shows expected salary hikes of employees based on expected fitment factor of 2.86.
Let’s take a look at projections for Level 1 to Level 10 central government employees.
| Pay Level | Current Basic Pay (7th CPC) | Expected Revised Basic Pay (8th CPC) | Increase (Approx) |
| Level 1 | ₹18,000 | ₹51,480 | ₹33,480 |
| Level 2 | ₹19,900 | ₹56,914 | ₹37,014 |
| Level 3 | ₹21,700 | ₹62,062 | ₹40,362 |
| Level 4 | ₹25,500 | ₹72,930 | ₹47,430 |
| Level 5 | ₹29,200 | ₹83,512 | ₹54,312 |
| Level 6 | ₹35,400 | ₹1,01,244 | ₹65,844 |
| Level 7 | ₹44,900 | ₹1,28,414 | ₹83,514 |
| Level 8 | ₹47,600 | ₹1,36,136 | ₹88,536 |
| Level 9 | ₹53,100 | ₹1,51,866 | ₹98,766 |
| Level 10 | ₹56,100 | ₹1,60,446 | ₹1,04,346 |
The 8th Pay Commission is supposed to be implemented from January 1, 2026. It means the central government employees ought to receive increased salaries from February 2026 (which will be the salary for January 2026). However, since the government has not announced any outlay in the Union Budget 2025-26 for the implementation of the pay panel recommendations, the new commission’s suggestions might likely be effective in the financial year 2026-27. In that case, employees and pensioners would receive their increased pay with some arrears.
