Govt Employee Schemes: Centre Announces 8th Pay Commission, Know What Will Change and its Benefits

8th Pay Commission: The Indian government has announced the implementation of the 8th Pay Commission, which is estimated to benefit around 5.5 million central government employees and 6.5 million retirees by increasing their pay and pensions.  The wage increase will be based on the fitment factor, which is an important multiplier used to alter employees’ base compensation. The 7th Pay Commission set this ratio at 2.57, resulting in a 23.55% compensation rise. According to media sources, the 8th Pay Commission has proposed a fitment factor ranging from 2.28 to 2.86, which may result in 20% to 50% salary hike.

Benefits of 8th Pay Commission

The implementation of the 8th Pay Commission is an important step for government employees as it intends to improve their financial security and general quality of life. In addition to pay increases, allowances such as Dearness Allowance (DA), House Rent Allowance (HRA), Travel Allowance (TA), and medical and educational perks may be modified. Given the economic and financial backdrop, the commission will make the appropriate adjustments to the remuneration structure to provide fair compensation. The 8th Pay Commission is set to take effect on January 1, 2026.