8th Pay Commission Calculation: 8th CPC Vs 7th CPC Pay Matrix, How PSU Employees Basic Salary Would Rise?

8th Pay Commission Salary Hike: The expectation of what could be new pay matrix for government employees under the upcoming 8th Pay Commission has taken the spot light. Experts are hinting at between 20% to over 30% hike in salaries. Under 8CPC, about 50 lakh central government and 65 lakh pensioners are likely to benefit big in the new pay matrix, as per the government.

It is expected that the final details of 8th Pay Commission will be implemented from January 1, 2026. The government has already informed that they would take into consideration recommendations in 2025. Any update related to 8CPC will be keenly watched on Budget day.

8CPC is going to be implemented in line with the standard gap between the previous Pay Commissions. Before 8CPC, currently, government employees are following the Pay Matrix of 7th Pay Commission which was implemented in January 1, 2016. Hence, 8CPC should be effective from January 2026.

7CPC Vs 8CPC Fitment Factor:

7CPC: This Pay Commission has a fitment factor of 2.57. When it was introduced, the basic pay scale of RS 7,000 was increased to Rs 18,000.

8CPC: There is debate of what could be the appropriate fitment factor under 8CPC. So far, media reports have stated that the fitment could be either 1.92, 2.08 or 2.86. Either way, under 8CPC, the basic pay matrix is going to increase, which will boost the livelihood of government employees against inflation.

How Is Fitment Factor Calculated Under 8CPC:

The fitment factor under Pay Commissions is vital to calculate the revised basic salary and pensions for the employees. The fitment factor is multiplied with the current basic pay to arrive the new minimum salary scale. The higher the level of an employee, the higher will be their minimum pay under the new fitment factor.

Here's how basic salary will rise for government employees from 7CPC to 8CPC:

Amount In Rupees		Fitment Factor Prediction: 1.92	Fitment Factor Prediction: 2.08	Fitment Factor Prediction: 2.86
Pay Levels	Basic Pay 7CPC	Basic Pay 8CPC	Basic Pay 8CPC	Basic Pay 8CPC
Level 1	18,000	34560	37440	51480
Level 2	19,900	38208	41392	56914
Level 3	21,700	41664	45136	62062
Level 4	25,500	48960	53040	72930
Level 5	29,200	56064	60736	83512
Level 6	35,400	67968	73632	101244
Level 7	44,900	86208	93392	128414
Level 8	47,600	91392	99008	136136
Level 9	53,100	101952	110448	151866
Level 10	56,100	107712	116688	160446

On January 31, Zubin Ashara, the State Media Co-Head BJP Gujarat said via X handler, "President Droupadi Murmu highlighted the crucial role of the middle class in India's economic growth, emphasizing that their dreams drive the nation's progress. She praised the government, led by PM Modi, for recognizing their contributions and establishing the 8th Pay Commission for government employees' welfare."

Noteworthily, the pay matrix, calculation and dearness allowance under the 8th Pay Commission is not been officially announced. GoodReturns.I also could not confirm the below expectations of pay matric under the 8th Pay Commission.

The first Pay Commission in India was introduced in January 1946, a year before Independence, however, its main report was submitted to the interim government in May 1947. Maintaining a 10-year gap, the second Pay Commission followed in August 1957, and so on. The current pay matrix is 7th CPC which was announced with a meager increase in salary of 14%.

It is expected that the dearness allowance is going to be reset at zero under the 8th Pay Commission. The latest DA is 53% of the basic pay currently.

Coming to pensioners, the minimum pension presently is Rs. 9000 per month, while the maximum limit on pension is 50% of the highest pay in the Government of India (presently Rs. 1,25,000) per month. Pension is payable up to and including the date of death.