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8th Pay Commission: Basic Pay Rose 554% From 5th to 7th CPC, Big Pay Hike on the Cards?  

Written by: Team Angel OneUpdated on: May 6, 2025, 1:35 PM IST
Central government basic pay saw a 554% hike from the 5th to 7th Pay Commission. With the 8th CPC confirmed, expectations of a significant salary rise are growing. 
8th Pay Commission: Basic Pay Rose 554% From 5th to 7th CPC, Big Pay Hike on the Cards?  
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Over the years, the Central Pay Commissions (CPCs) have dramatically revised salary structures for central government employees and pensioners. Between the 5th and 7th CPC, the minimum basic salary surged from ₹2,750 to ₹18,000, a staggering 554% increase, as per news reports. This growth occurred across three pay commissions:  

  • 5th CPC (1996): Minimum basic salary of ₹2,750.  
  • 6th CPC (2006): Raised to ₹7,000.  
  • 7th CPC (2016): Increased to ₹18,000, with a fitment factor of 2.57.  

8th Pay Commission: Big Expectations for 2026  

The Indian government has officially confirmed the constitution of the 8th Central Pay Commission. While the report’s timeline is still undecided, the commission is expected to be effective from January 1, 2026. It is anticipated to impact:  

  • Over 36 lakh central government civilian employees  
  • Pensioners, including family pensioners and defence personnel. 

Potential Fitment Factor and Salary Hike Projections  

As per news reports, early estimates suggested that the fitment factor in the 8th CPC may range between 2.28 and 2.86, resulting in a 40% to 50% hike in basic salaries. For instance, A basic salary of ₹20,000 could rise to ₹46,600–₹57,200.  

8th CPC’s Revision in Pensions and Allowances  

While the 7th CPC had already overhauled pensions and allowances, including a hike in Dearness Allowance (DA) to 53% by 2024, the 8th CPC will likely enhance these benefits further. These revisions could also be included in the 8th CPC’s recommendations:  

  • Minimum pensions  
  • Transport and risk allowances  
  • Health insurance coverage  

Read More: 8th Pay Commission Calculator: Here’s What Govt Employees’ Salaries Could Look Like at 2.0 Fitment Factor. 

Conclusion  

The transition from the 5th to 7th Pay Commission marked a historic 554% increase in basic pay. With the 8th Pay Commission expected to go live in 2026, central government employees and pensioners can anticipate another substantial salary boost. Outcomes, however, will depend on the government’s decision regarding the fitment factor and related recommendations.  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: May 6, 2025, 1:35 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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