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8th Pay Commission: Basic Salary Was Hiked 157% From 6th to 7th Pay Commission

Written by: Team Angel OneUpdated on: May 2, 2025, 6:59 PM IST
Basic pay was hiked 157% from the 6th to 7th Pay Commission. What’s in store for central government employees with the upcoming 8th pay commission?
8th Pay Commission: Basic Salary Was Hiked 157% From 6th to 7th Pay Commission
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In the last two decades, central government salary structures have changed significantly. The 6th and 7th Pay Commissions revised basic pay, allowances, and pensions. The 8th Pay Commission is expected to take effect from January 1, 2026. Here’s a look at how basic pay changes between 6th and 7th commissions, along with the percentage jump in basic pay. 

6th and 7th Pay Commissions: Salary Revision for Government Employees 

One of the most impactful changes introduced by the 7th Pay Commission in 2016 was the hike in minimum basic salary. Here’s a breakdown: 

6th Pay Commission (2006): 

  • Minimum basic salary: ₹7,000 
  • Fitment factor: Initially 1.74, later increased to 1.86 
  • Introduced running pay bands and consolidated various grades

7th Pay Commission (2016): 

  • Minimum basic salary: ₹18,000 
  • Fitment factor: 2.57 
  • Replaced pay bands with a Pay Matrix, simplifying salary structures

Therefore, the minimum basic salary will increase by 157.14% from the 6th to the 7th Pay Commission.   

6th and 7th Pay Commissions: Allowances and Pension Enhancements 

Both commissions also introduced major updates in allowances and pensions: 

Dearness Allowance (DA): 

  • 6th CPC: Increased from 16% to 22% 
  • 7th CPC: Reached 53% of basic pay as of 2024

Pensions

  • 6th CPC: Minimum pension increased to ₹3,500 
  • 7th CPC: Minimum pension hiked to ₹9,000 
  • Fitment factor also applied to pensioners for uniform revision

Other benefits included health insurance for employees and pensioners (introduced in the 7th CPC) and rationalisation of risk and transport allowances. 

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

What to Expect from the 8th Pay Commission? 

Although this article focuses on the 6th and 7th CPCs, it’s worth noting that the 8th Pay Commission, set to be implemented from January 1, 2026, could further transform pay structures. Early projections suggest: 

  • Minimum basic salary could rise to ₹41,000–₹51,480 per month 
  • Fitment factor expected: 2.28 to 2.86  
  • Estimated salary hikes: 20% to 35%  
  • Pension revisions and enhanced allowances are also on the cards  

The minimum basic salary increase translates to a potential salary hike of up to 186% over the existing basic pay. 

Conclusion 

The shift from the 6th to the 7th Pay Commission marked a 157% increase in the minimum basic pay, from ₹7,000 to ₹18,000, alongside structural reforms in salary matrices, allowances, and pensions. With the 8th Pay Commission on the horizon, central government employees and pensioners can expect another significant financial uplift. However, the final figures depend on the government’s assessment and the officially approved fitment factor. 

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 own 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 2, 2025, 6:59 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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