8th Pay Commission: Salary of Central government employees may increase by Rs 14-19000 per month

The Narendra Modi government is expected to implement the 8th Pay Commission in 2026-2027. Ahead of the implementations, several assumptions are making rounds with the Central government employees eagerly waiting for the big decision.

Expected Salary Hike After 8th Pay Commission Implementation:

According to a report by Goldman Sachs, after the implementation of the 8th Pay Commission, the salaries of the Central government employees may increase by Rs 14,000 to Rs 19,000 per month.

The global financial services firm on Tuesday stated that around 50 lakh Central government employees and 65 lakh pensioners are expected to benefit from the pay revision.

The commission is likely to be formed in April, with its recommendations expected to be implemented in 2026 or 2027. Goldman Sachs conducted an analysis to estimate the salary hike.

Currently, central government employees earn a median monthly salary of Rs 1 lakh before tax. Based on different budget allocations, the firm projected possible salary increases.

8th Pay Commission & Assumptions

If the government allocates Rs 1.75 lakh crore for the 8th Pay Commission, and half of this amount is used for salary revision while the rest is for pensions, the median salary could rise to Rs 1,14,600 per month.

If the allocation increases to Rs 2 lakh crore, salaries may go up to Rs 1,16,700 per month, and with an allocation of Rs 2.25 lakh crore, the median salary could reach Rs 1,18,800 per month.

For comparison, the implementation of the 7th Pay Commission in 2016 had cost the government Rs 1.02 lakh crore, according to the report.

Although the revised salaries and pensions were applied retrospectively from January 2016, they were actually rolled out from July 2016, impacting the financial year 2016-17, said Goldman Sachs.

Once formed, the 8th Pay Commission will consult with various stakeholders to determine the fitment factor and other details regarding salary and pension revisions.

Employee unions have hinted that they may demand a fitment factor of 2.57 or higher, similar to what was recommended under the 7th Pay Commission.
(With IANS Inputs)