If you are a government employee then this article is just for you. On January 16, 2026, Prime Minister Narendra Modi gave the green light for the establishment of the 8th Pay Commission. This move is set to boost the salaries of 50 lakh central government employees and the allowances for 65 lakh pensioners. Railway Minister Ashwini Vaishnav shared this news last week. With the Modi government confirming this, central government employees are eagerly anticipating a significant salary bump. So, what kind of salary increase can we expect with the 8th Pay Commission?
How much will salaries go up?
Since the announcement of the salary hike, there’s buzz that the new pay commission might suggest a fitment factor of 2.86. If that happens, central government employees could see their salaries rise by 186%. Should this fitment factor get the nod, the minimum basic salary would jump from Rs 18,000 to Rs 51,480. Additionally, pensioners could see their pensions increase from Rs 9,000 to Rs 25,740. This salary boost could roll out by 2026.
What happened with the 7th Central Pay Commission?
The 7th Central Pay Commission had the government conduct a study to figure out how to raise the minimum salary. Reports indicate that they brought in the Indian Institute of Management, Ahmedabad, to compare salaries between the government and private sectors.
The findings showed that the lowest-ranking government employee, a general helper, earns around Rs 22,579, which is more than double what a general helper makes in the private sector, where salaries range from Rs 8,000 to Rs 9,500. After weighing all the factors, the Commission concluded that the government’s recommended salary of Rs 18,000 per month starting from January 1, 2016, was fair and would allow government employees to live comfortably with additional allowances and benefits.