8th Pay Commission 2026: Salary Structure, Pay Hike, DA, HRA, Arrears Explained The 8th Central Pay Commission (8th CPC), established by Prime Minister Narendra Modi in 2025, is set to redefine salary structures, allowances, and pensions for central government employees and pensioners. The commission’s recommendations, once approved, will take effect from January 1, 2026, with employees receiving back pay for the months between January 2026 and the implementation date. Central government staff unions have submitted their demands to the commission, including a fitment factor of 3.83 and a minimum basic pay of Rs 69,000, which would significantly increase salaries compared to the previous 7th CPC’s 2.57 fitment factor and Rs 18,000 minimum basic pay. The fitment factor, a multiplier applied to the current basic pay, determines the new salary structure. Under the proposed demand, the new basic pay would be calculated as the old basic pay multiplied by 3.83. This would result in a substantial rise in take-home pay, as even minor adjustments to the fitment factor can lead to significant changes in overall compensation. The National Council - Joint Consultative Machinery (NC-JCM), representing central government staff, submitted this proposal, though the government will ultimately decide the final fitment factor and other terms. Employee unions argue that the demand for Rs 69,000 as the minimum basic pay is necessary to address inflation and rising living costs. Since 2016, real incomes have been eroded by inflation, with housing, education, and healthcare expenses surging. The current Dearness Allowance (DA), which is nearly 60% of basic pay, has also exceeded 50%, reflecting heightened cost pressures.#narendra_modi #8th_cpc #nc_jcm #national_council_joint_consultative_machinery #central_government_staff_unions
