8th Pay Commission Salary Hike Of Up To 34 Expected For Central Government Staff

The 8th Pay Commission is expected to be set up soon, potentially benefiting over 1 crore government employees and pensioners across India. With implementation likely by FY27, the commission’s recommendations may result in a 30-34% hike in salaries and pensions. The move could cost the Centre ₹1.8 trillion, impacting around 44 lakh central government employees and 68 lakh pensioners. The hike will affect key components of government compensation—Basic Pay, Dearness Allowance (DA), House Rent Allowance (HRA), and Transport Allowance (TA). DA, linked to the Consumer Price Index, is revised periodically. The 7th Pay Commission had set the fitment factor at 2.57x, raising the minimum basic pay to ₹18,000.