8th Pay Commission: From peon to DM… who will see their salary increase by how much? Here's the complete calculation

8th Pay Commission: The term of the Seventh Pay Commission is about to end. As the December 31, 2025, date approaches, discussions about the Eighth Pay Commission have intensified among central employees and pensioners. 

Nearly 11.9 million families across the country are eagerly awaiting the government's decision next year. The biggest question is: if the fitment factor is set at 2.15, how much will the monthly paycheck increase? Let's understand this math in detail.

From peon to officer… how much will the picture change?

The entire wage increase will depend on the "fitment factor." If the proposed 2.15 formula is implemented, employees at every level will see a significant increase in their basic salaries. 

For Level 1 employees, i.e., peons or entry-level employees, their basic salary is currently ₹18,000. After the new commission, this will more than double to ₹38,700.

Meanwhile, if we consider higher-level officers, i.e., Level 18, the difference is even more striking. Top officers currently earning a basic salary of ₹2.5 lakh (approximately $250,000) could see their new basic salary reach ₹537,500 (approximately $537,500). 

Similarly, the salaries of officers from Level 10 to Level 12 are projected to reach between ₹1.25 lakh (approximately $250,000) and ₹1.75 lakh (approximately $250,000). This increase will not only provide financial security but also significantly improve their standard of living.

Grade    Current Basic Pay    Estimated Basic Pay

Level 1    ₹ 18,000    ₹ 38,700.00
Level 2    ₹ 19,900    ₹ 42,785.00
Level 3    ₹ 21,700    ₹ 46,655.00
Level 4    ₹ 25,500    ₹ 54,825.00
Level 5    ₹ 29,200    ₹ 62,780.00
Level 6    ₹ 35,400    ₹ 76,110.00
Level 7    ₹ 44,900    ₹ 96,535.00
Level 8    ₹ 47,600    ₹ 102,340.00
Level 9    ₹ 53,100    ₹ 114,165.00
Level 10    ₹ 56,100    ₹ 120,615.00
Level 11    ₹ 67,700    ₹ 145,555.00
Level 12    ₹ 78,800    ₹ 169,420.00
Level 13    ₹ 118,500    ₹ 254,775.00
Level 13    ₹ 131,100    ₹ 281,865.00
Level 14    ₹ 144,200    ₹ 310,030.00
Level 15    ₹ 182,200    ₹ 391,730.00
Level 16    ₹ 205,400    ₹ 441,610.00
Level 17    ₹ 225,000    ₹ 483,750.00
Level 18    ₹ 250,000    ₹ 537,500.00

After all, what is this fitment factor?

The entire responsibility for salary increases rests on this "fitment factor." Simply put, it's a multiplier. Your current basic salary is multiplied by this number to determine your new salary. 

For example, if someone's basic pay is ₹50,000 and the fitment factor is 2.15, multiplying ₹50,000 by 2.15 will result in a new salary of ₹107,500.

But this factor isn't decided out of thin air. Its determination takes into account several economic factors, such as inflation, cost of living, and the state of the government's treasury. 

Experts say that the government also considers private sector salaries and market benchmarks before making its final decision.

When will the new system be implemented and what about the arrears?

Technically, the 7th Pay Commission's term expires on December 31, 2025. This means that the new rates are expected to be implemented from January 1, 2026. 

However, government processes and approval of recommendations often take time. History shows that it can take up to two years for the Commission's recommendations to be implemented. The silver lining is that even if there is a delay, employees are still likely to receive their arrears.

Importantly, when basic salary changes, the impact isn't limited to just the basic salary. Dearness Allowance (DA), House Rent Allowance (HRA), and post-retirement pension are also calculated on this basic salary. This means that if the 2.15 factor is approved, it could prove to be one of the biggest gifts for employees ever.

Eighth Pay Commission