8th Pay Commission Likely to Offer Lower Salary Hike in 2025: Latest Details, Projections & Timelines
The 8th Pay Commission is the most-awaited salary reform for millions of central government employees and pensioners. A large number of them are looking forward to a significant salary increase, more so as inflationary pressure continues to mount. However, new reports suggest the 8th pay commission may recommend a lower hike compared to the previous cycle, raising concerns and sparking debate among staff and experts.
What’s the Main Update?
- The government has initiated the formal process for the 8th Pay Commission, aiming to adjust salaries and pensions for over 50 lakh central government employees and 65 lakh pensioners.
- Initial projections indicate a salary increase of approximately 13%, slightly lower than the 14.3% hike from the 7th Pay Commission implemented in 2016.
- The fitment factor—used to calculate the basic salary—may be set at 1.8 (down from 2.57 in the previous cycle), which will noticeably impact take-home pay.
Key Dates & Timeline
- Cabinet Approval– 16th January 2025
- Report Submission (expected): By the end of 2025
- Implementation Target: January 1, 2026 (may extend to early 2027 depending on government review process)
- The pay commission is designed to deliver its recommendations in one year. Additionally, previous commissions have taken approximately 1.5 years from their organisation to implementation.
How Will Salaries Be Calculated?
Understanding the Fitment Factor
- The fitment factor is a multiplier applied to the current basic salary to set the new basic pay.
- 7th Pay Commission used a factor of 2.57
- 8th pay commission is expected to use 1.8 (reports also predict a possible range between 1.83 and 2.46, but most suggest 1.8)
Example Salary Changes
The changes look bigger initially—but since the DA (dearness allowance, now at 55%) resets to zero under the new structure, the actual monthly gains are more minor.
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| Pay Level | Role (Representative) | 7th CPC Basic Pay | Projected Fitment Factor | Projected 8th CPC Basic Pay | Approx. Hike |
| Level 1 | Entry-level Group C | ₹18,000 | 2.57 → 2.86 | ₹46,260 – ₹51,480 | ~157 – 186 % |
| Level 5 | Non-gazetted staff | ₹29,200 | 2.57 → 2.86 | ₹75,044 – ₹83,672 | ~157 – 187 % |
| Level 10 | Assistant Collector (entry-level IAS/IPS) | ₹56,100 | ~1.2× (some projections) | ₹67,320 (20 % hike) | ~20 % |
| Level 14 | Joint Secretary | ₹1,44,200 | ~1.2× | ₹1,73,040 | ~20 % |
| Level 18 | Cabinet Secretary | ₹2,50,000 | ~1.2× | ₹3,00,000 | ~20 % |
8th Pay Commission: Salary Revision Example for Common Pay Levels: Latest Update 2025
Sample Calculations:
- A salary of Rs 18,000:
- With 7th Pay plus DA: Rs 27,900
- After 8th Pay (no DA): Rs 32,000
- With 7th Pay plus DA: Rs 27,900
- A salary of Rs 40,000:
- With 7th Pay plus DA: Rs 62,000
- After 8th Pay (no DA): Rs 72,000
- With 7th Pay plus DA: Rs 62,000
- A salary of Rs 50,000:
- With 7th Pay plus DA: Rs 77,500
- After 8th Pay (no DA): Rs 90,000
- With 7th Pay plus DA: Rs 77,500
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Comparing 7th and 8th Pay Commission Hikes
| Pay Commission | Fitment Factor | Minimum Basic Pay (Old) | Minimum Basic Pay (New) | Maximum Basic Pay (Old) | Maximum Basic Pay (New) | Effective Hike (%) |
| 7th CPC | 2.57 | Rs 7,000 | Rs 18,000 | – | Rs 2.25 lakh | 14.3 |
| 8th CPC (proj) | 1.8 | Rs 18,000 | Rs 32,000 | – | – | 13 |
Inflation & DA Reset: Why the Effective Raise Is Lower
- The basic pay increases, but the dearness allowance (currently 55%) resets to zero after the introduction of new pay bands.
- DA will also be restarted when salaries increase, being added twice yearly in line with the CPI index, yet it will remain at zero.
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Stakeholder Responses and Government’s Stand
- The Government’s Finance Ministry told Parliament that all feedback is being collected, and the 8th Pay Commission’s structure will reflect inputs from central and state departments.
- National Council-JCM, representing employees, is demanding a fitment factor at least equal to the previous cycle, but experts say 1.8 looks more likely.
- More visibility on status and next steps is likely to be given during the Monsoon Session of Parliament, which began July 21, 2025.
What Else Is Changing?
- The revision is of use to the 4.4 million working people and about 7 million retirees.
- Pensioners will see similar changes, as fitment factors rework the pension base.
- Involved keys:
- Basic Pay
- Dearness Allowance (DA)
- House Rent Allowance (HRA)
- Transport Allowance (TA)
- Other allowances
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Important Milestones: The Pay Commission Timeline
| Pay Commission | Cabinet Approval | Report Submission | Implementation Date |
| 7th Pay Commission | February 2014 | November 2015 | January 1, 2016 |
| 8th Pay Commission | January 16, 2025 | By the end of 2025 | January 1, 2026 (project) |
Frequently Asked Questions (FAQs)
Q1: When will the 8th pay commission go into effect?
The foreseen date is January 1, 2026, although it may be postponed to late 2026 or even the beginning of 2027, pending review by the government.
Q2: Why is the projected salary hike lower than the 7th Pay Commission?
Experts predict a fitment factor of 1.8 (vs 2.57 earlier). With DA reset to zero, even a higher basic pay results in a smaller real gain.
Q3: Who benefits from the 8th pay commission?
About 50 lakh central government employees and 65 lakh pensioners are expected to be covered.
Q4: What is the formula for the new salary?
Multiply the current basic pay by the new fitment factor. The new basic may be Rs 32,000, down from Rs 18,000. The existing DA will be erased and restarted.
Q 5: What is done with DA and other allowances?
DA is reduced to zero but will accumulate after every six months in the form of an inflation-related upward adjustment.
Q6: What happens to pensions under the 8th Pay Commission?
Pensions will be recalculated using the new fitment factor, similar to the changes in salaries.
Q7: How can I obtain official news?
Keep updated on the Ministry of Finance and Parliament, along with trustworthy news sources like The Economic Times, NDTV, and Times Now News, where the latest official updates will be posted.
