The Eighth Pay Commission has been approved. How much will salaries increase? Understand the calculation of basic pay, DA, and HRA..

8th Pay Commission Salary Calculation Formula: The central government has approved the Eighth Pay Commission. It was given the green light in Tuesday's cabinet meeting. Union Minister Ashwini Vaishnav, responding to questions from journalists, said that the entire picture will become clearer after the Pay Commission's recommendations. It is believed that its full implementation will not be until 2027, but its benefits can be realized as early as January 1, 2026. This amount will be given as arrears to more than 5 million central employees and approximately 6.5 million pensioners. The second important point concerns the fitment factor formula. Fitment factor is the multiplier used to multiply an employee's current basic salary to determine the new basic salary.

For example, in the 6th Pay Commission, the minimum basic salary was ₹7,000, and in the 7th Pay Commission, a fitment factor of 2.57 was implemented, increasing the minimum basic salary directly to ₹18,000. Now, the basic salary will be determined according to the fitment factor implemented in the 8th Pay Commission.

Some reports discuss a fitment factor of 1.92, while others suggest a fitment factor of 2.86. One possibility is that the Commission may implement a fitment factor of 1.96.

Whose salary will increase by how much?
For salary calculations, we can use a fitment factor of 1.96. Accordingly, the minimum basic salary, which is currently ₹18,000, could increase to ₹35,280. This will be the basic salary of Level 1 employees. While dearness allowance (DRA) will not be included, it will definitely include HRA (House Rent Allowance), depending on the city.

The formula for calculating the new basic salary will be:

Old basic salary x 1.96 = Basic salary under the 8th Pay Commission

According to this formula, see how much the basic salary of employees from Level 1 to Level 18 will increase.

How much will the salary increase under the 8th Pay Commission be?
(Calculated using a fitment factor of 1.96.)

18,000                   490,000
Table with 3 columns and 19 rows. Sorted ascending by column "Pay Matrix Level" (column headers with buttons are sortable)
Pay Matrix Level      Current Basic Salary (₹)        Basic Salary in 8th Pay Commission (₹)
Level 1                         18,000                                  35,280

Level 2                        19,900                                  39,004
Level 3                        21,700                                 42,532
Level 4                        25,500                                49,980
Level 5                        29,200                                 57,232
Level 6                        35,400                                 69,384
Level 7                        44,900                                 88,004
Level 8                        47,600                                  93,296
Level 9                        53,100                                 104,076
Level 10                      56,100                                109,956
Level 11                       67,700                                 132,692
Level 12                      78,800                                154,448
Level 13                      123,100                              241,276
Level 13A                    131,100                               256,956
Level 14                      144,200                               282,632
Level 15                      182,200                               357,112
Level 16                      205,400                               402,584
 Level 17                    225,000                               441,000
Level 18                     250,000                              490,000
Level 2                      19,900                                39,004
Level 3                      21,700                                 42,532
Level 4                      25,500                               49,980
Level 5                      29,200                              57,232
Level 6                      35,400                              69,384
Level 7                      44,900                              88,004
Level 8                      47,600                              93,296
Level 9                     53,100                                104,076

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