In a significant development for central government employees, the 8th Pay Commission has announced an 18% increase in salaries, bringing much-needed financial relief to over 50 lakh employees and 65 lakh pensioners across the country. This decision, approved by the Union Cabinet, is set to enhance the quality of life for government workers and their families.
The salary hike is based on a revised fitment factor, which has been increased from 2.57 to 2.86. This adjustment will raise the minimum basic pay from ₹18,000 to ₹51,480, ensuring a substantial boost in earnings. The commission has also proposed reforms in the Modified Assured Career Progression (MACP) scheme, allowing employees up to five promotions during their careers.
Additionally, the inclusion of Dearness Allowance (DA) in the basic pay structure and updates to the Aykroyd formula to reflect modern living expenses are among the key highlights of the 8th Pay Commission’s recommendations. These measures aim to address inflation and improve the financial stability of government employees.
The implementation of the 8th Pay Commission’s recommendations is expected to commence from January 1, 2026, marking a new chapter in the evolution of salary structures for central government employees. This move is anticipated to boost consumption and contribute to the overall economic growth of the nation.
