8th Pay Commission: The central government employees were eagerly waiting for updates on the 8th Pay Commission in the Union Budget 2026-27. But the budget that was presented on February 1 did not include any information about changes in salaries. Information about the new pay structure and any increase in salaries is yet to be obtained. But estimates have been provided by experts regarding how much the employees’ salaries are likely to increase after the implementation of the recommendations of the 8th Pay Commission.
For example, a central government employee with a basic salary of Rs 18,000 is likely to see an increase in their gross salary to around Rs 45,241 per month. This is because the estimate includes the fitment component, House Rent Allowance (HRA), and Transport Allowance (TA). Though it seems like a substantial increase, it is the total potential benefit that can be derived from the new pay structure.
8th Pay Commission:Â What is the Fitment Factor?
The fitment factor is a multiplier used to revise the basic pay and pensions of central government employees whenever a new pay commission comes into effect. It takes into account various economic and institutional considerations. Typically, it is calculated using the sum of basic pay and grade pay as a base to determine the necessary increase.
According to reports, the 8th Pay Commission may recommend a fitment factor ranging between 1.70 and 2.86, applicable across all levels of employees. While the factor is uniform, employees in higher positions will see a larger increase in actual monetary terms.
How Much Will the Basic Salary Increase?
Using an estimated fitment factor of 1.92, the calculation for a new basic salary would be,
New Basic Salary = Old Basic Salary × Fitment Factor
= Rs 18,000 × 1.92 = Rs 34,560
This new basic pay of Rs 34,560 will serve as the base for calculating HRA, TA, and Dearness Allowance (DA).
House Rent Allowance (HRA) Under 8th Pay Commission
HRA is calculated as a percentage of the basic salary, and cities are categorized as:
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X City (Metro) – 27%
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Y City – 18%
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Z City – 9%
For employees living in an X city like Delhi, Mumbai, Chennai, or Bengaluru, HRA would be:
27% × Rs 34,560 = Rs 9,331
Transport Allowance (TA) Under 8th Pay Commission
TA varies depending on the employee’s category and city. In major cities, an average TA of Rs 1,350 can be expected.
Dearness Allowance (DA) Under 8th Pay Commission
When a new pay commission is implemented, the DA is reset to 0%. This means employees will not receive any DA initially. It will later increase every six months based on the Consumer Price Index (CPI). Therefore, at the time of 8th Pay Commission implementation, DA is considered 0%.
