8th Pay Commission Date, Salary Structure pdf, Salary slab, Fitment Factor, Calculator, Pay Matrix

Mr Portal

Jul 12, 2024

This Pay Commission is expected to bring a wide range of benefits in terms of pay scale and retirement benefits. This will not only benefit the government employees but also the military personnel and pensioners.

The implementation of the 8th CPC will eliminate the disparity between the salaries of different groups of employees and also help them cope with inflation. Here are more details about the 8th Pay Commission.

Here is the overview of the 8th Pay Commission:

Title	8th Pay Commission
Draft Prepared in the Year	2023
Commission announced	2024
Implementation year	2026
Commission Category	Finance
Beneficiaries	Employees of Central Government

What is the 8th Pay Commission?

The 8th Pay Commission is a proposed commission in India intended to revise the salary, allowances, and pensionary benefits for all Central Government employees (CGE). However, it is important to note that the 8th Pay Commission has not yet been officially established, and there is no set date for its implementation.

Here’s what we know so far:

Purpose: Similar to previous Pay Commissions, the 8th Pay Commission aims to address rising living costs and adjust salaries for CGEs to reflect their current value.

Current Status: As of 14 February 2024, the Indian government has not formally announced the establishment of the 8th Pay Commission. While some media reports and experts suggest it could be implemented in 2024, the government has shown reluctance.

Potential Implementation: If established, the 8th Pay Commission could benefit approximately 48.62 lakh CGEs and 67.85 lakh pensioners, with potential salary increases estimated to range from Rs.20,000 to Rs.25,000.

Timeline: Some sources speculate an announcement could be made before the 2024 general elections, with an implementation date of 1 January 1, 2026, following the usual 10-year interval between Pay Commissions. However, this is purely speculative and has not been confirmed by the government.

8th CPC Salary Increase

For all Central Government employees, the 8th Pay Commission is expected to suggest a revision in the basic salary, which may fall between approximately 25% to 35%. The 8th Pay Commission will also suggest a significant increment in the retirement benefits of up to 30%.

8th Pay Commission Date

The announcement of the 8th Pay Commission is expected to take place before the general election in 2024. The pay commission is expected to be into effect from 1 January 2026 that will benefit all the central and state government employees, pensioners, and family pensioners.

Latest Updates on the 8th Pay Commission

Before the 2024 Budget, the Central Government received a proposal letter to establish the 8th Pay Commission. This letter includes recommendations for basic pay, allowances, pensions, and other benefits for government employees and pensioners. If the government announces the Eighth Pay Commission, it could take effect from January 1, 2026, following the usual 10-year interval between Pay Commissions. However, this remains speculative until officially confirmed by the government.

8th Pay Commission Fitment Factor

The factor that converts the old basic pay to the new basic pay is the Fitment Factor, which is a number that compares pre-revised basic pay to revised basic pay. The following is the fitment factor and other details of 4th Pay Commission to 8th Pay Commission in India:

Pay Commission	Hike in pay (%)	Fitment Factor	Minimum Basic Salary
4th Pay Commission	27.6%	-	Rs.750
5th Pay Commission	31%	-	Rs.2,550
6th Pay Commission	54%	1.86	Rs.7000
7th Pay Commission	14.29%	2.57	Rs.18,000
8th Pay Commission	20% (expected)	3.00 (expected)	Rs.21,600 (expected)

Expected 8th Pay Commission Minimum Basic Salary Table

The following is the list of minimum basic salary of expected 8th Pay Commission:

Pay Matrix Level	Basic Salary of 7th CPC	Basic Salary of 8th CPC
Pay Matrix Level 1	Rs.18,00	Rs.21,600
Pay Matrix Level 2	Rs.19,900	Rs.23,880
Pay Matrix Level 3	Rs.21,700	Rs.26,040
Pay Matrix Level 4	Rs.25,500	Rs.30,600
Pay Matrix Level 5	Rs.29,200	Rs.35,040
Pay Matrix Level 6	Rs.35,400	Rs.42,480
Pay Matrix Level 7	Rs.44,900	Rs.53,880
Pay Matrix Level 8	Rs.47,600	Rs.57,120
Pay Matrix Level 9	Rs.53,100	Rs.63,720
Pay Matrix Level 10	Rs.56,100	Rs.67,320
Pay Matrix Level 11	Rs.67,700	Rs.81,240
Pay Matrix Level 12	Rs.78,800	Rs.94,560
Pay Matrix Level 13	Rs.1,23,100	Rs.1,47,720
Pay Matrix Level 13 A	Rs.1,31,100	Rs.1,57,320
Pay Matrix Level 14	Rs.1,44,200	Rs.1,73,040
Pay Matrix Level 15	Rs.1,82,200	Rs.2,18,400
Pay Matrix Level 16	Rs.2,05,400	Rs.2,46,480
Pay Matrix Level 17	Rs.2.25 lakh	Rs.2.70 lakh
Pay Matrix Level 18	Rs.2.50 lakh	Rs.3 lakh

Benefits of 8th Pay Commission Implementation

For Central Government Employees:

Increased Salaries: The most anticipated benefit is a hike in basic salary, estimated between 25% and 35%. This can improve living standards and provide greater financial security.

Enhanced Allowances: To account for inflation and shifting living expenditures, the commission may revise several benefits, including the Dearness Allowance (DA), House Rent Allowance (HRA), and Transport Allowance (TA).

Improved Retirement Benefits: An increase in pension could offer better financial security after retirement, with estimates suggesting up to a 30% increase.

Boosted Morale and Motivation: Taking care of financial issues may increase worker satisfaction and even boost output.

For the Indian Economy:

Increased Spending: Government workers are likely to spend more when they have greater disposable income, which will boost demand for products and services and boost the economy.

Tax Revenue Growth: Increased salary may result in increased tax income for the government.

Reduced Financial Stress: Employee financial well-being can lessen the strain on social welfare programs and improve societal stability.

Yes, the 8th Central Pay Commission will soon replace the 7th Central Pay Commission by revising the pay scales, allowances, and pension benefits every ten years for all Central government employees and pensioners.

The 7th CPC was established in 2014 and took effect on 1 January 2016. While the 8th CPC will be established in 2024 and will be implemented on 1 January 2026 by bringing about a change in pay scales among the government employees and boosting the retirement benefits by 25%.

8th Pay Commission Benefits :

8th Pay Commission is expected to bring several benefits to government employees and positively impact the Indian economy. Here are the anticipated benefits :

Increased Salaries : Basic salaries are expected to increase by approximately 20% to 35%, enhancing the take-home pay for central government employees and ensuring better living conditions and financial stability.
Enhanced Allowances : Allowances such as House Rent Allowance (HRA), Transport Allowance (TA), and Dearness Allowance (DA) might adjusted to reflect inflation and the changing cost of living.
Boost Spending : With higher disposable incomes, government employees may increase their spending, thereby boosting the economy through higher demand for goods and services.
Improved Retirement Benefits : Pension enhancements of up to 30% can provide better financial security post-retirement.
Increased Tax Revenue : Higher salaries may lead to increased tax revenue for the government.
Decreased Financial Strain : Enhanced financial stability among employees can lead to improved social stability and a reduced reliance on social welfare programs.
Talent Attraction and Retention : Competitive compensation packages could make government jobs more attractive to skilled professionals, aiding in talent acquisition and retention.

8th Pay Commission Salary Slab :

As discussions about the 8th Pay Commission gain momentum, social media is abuzz with questions regarding the expected salary increases and the fitment factor that will used to revise salaries.
The increase in salary will largely depend on the fitment factor and the minimum pay increase.

8th Pay Commission Pay Matrix and Fitment Factor :

The fitment factor is crucial as it is used to determine the revised salary and pay matrix under the 8th Pay Commission.
This factor helps align the current 7th CPC pay scale with the new 8th CPC pay scale.

Seventh Pay Commission Fitment Factor :

The 7th Pay Commission established a uniform multiplication factor of 2.57 to revise the 6th CPC pay to the 7th CPC pay scale.
A new pay matrix format was introduced to simplify pay fixation calculations during promotions and annual increments.

Fitment Factors Used in 7th CPC :

The 7th CPC utilized multiple fitment factors: 2.57, 2.62, 2.67, 2.72, 2.78, and 2.81.
These different fitment factors were applied to various pay levels to enhance pay differentiation between PB1, PB2, PB3, and PB4 pay scales.

Justification for Different Fitment Factors :

The 7th Pay Commission used different fitment factors to rationalise pay according to the classification of posts.
This approach was adopted to ensure a fair enhancement in pay across different pay scales, achieving rationalisation as per the classification of posts in the 7th CPC.

How the 8th Pay Commission Fitment Factor Can Determined ?

Primary Determinants :

Minimum Pay
Rate of Dearness Allowance (DA)

Effective Date :

Recommendations to take effect from January 1, 2026.

Process :

Nullify the DA rate up to January 1, 2026.
Integrate the neutralized DA rate with the current basic pay to establish a revised pay scale.

a) Calculation of 8th CPC Minimum Pay :

Initial Step : Calculate the revised Minimum Pay based on prevailing financial conditions.
Factors Considered :
- 15th ILC Norms
- Dr. Akroyd Formula
Components :
- Present market price of essential commodities for a family.
- [Read this Post to Know the Projected Minimum 8th CPC Minimum Pay](link to the post).
Fitment Factor Determination : Derived through DA neutralisation.

b) Dearness Allowance Rate Applicable from January 1, 2026 :

Projected Increase : DA expected to increase by 20% by January 1, 2026.
Current Rate : 50% as of January 1, 2024.
Future Installments :
- DA installments to released on :
  - July 1, 2024
  - January 1, 2025
  - July 1, 2025
  - January 1, 2026
Anticipated Rate : Expected to reach 70% by January 1, 2026.

What is the 8th pay commission?
A panel of individuals appointed by the Central Government reviews the salary of employees and retirement benefits of retirees and employees under the 8th Pay Commission.
When will the 8th Pay Commission be implemented?
The 8th Pay Commission is expected to be implemented on 1 January 2026.
What will be the salary in 8th Pay Commission?
The basic salary in the 8th Pay Commission will be Rs.25,000 approximately, after implementation of the 8th CPC.
What is the expected increase in salary for 8th pay commission?
The salary under the 8Th Pay Commission is expected to increase by approximately 20%.
Is there any proposal to implement an Auto Pay Revision System for Central Government employees?
No, there is no proposal to implement an Auto Pay Revision system as of now for the employees under Central Government.
Is there possible to constitute the 8th pay commission?
Yes, it is possible to constitute the 8th Pay Commission, but the date has not been announced yet, which is likely to be announced in January 2024.
What is the 8th Pay Commission salary slab?
There is no fixed salary slab in the 8th Pay Commission as of now and it will be calculated by determining the minimum pay based on the 15th ILC norms and Dr. Aykroyd Formula, through the utilisation of wage rate index in the 2025.
When DA hits 50%, what happens?
The daily stipend, rental allowance, hostel subsidy, and other related allowances will rise if the DA exceeds 50%. It happens because these allowances are correlated with the DA, meaning that they rise in tandem with the DA.