New Delhi. The central government has approved the formation of 8th Central Pay Commission (8th Pay Commission) for amending allowances and salary of about 50 lakh central employees and 65 lakh pensioners. This announcement is expecting central employees and pensioners to increase their salary and pension. The 8th Pay Commission can be implemented from January 2026.

Importance of 8th Pay Commission

The pay commission’s job is to amend the pay scale of the employees keeping in mind the current economic situation, inflation, nature of work and government financial situation. The last 7th Pay Commission came into force in 2016, and since then the salary of central employees has been quite stable. Now the 8th Pay Commission report is expected to come into force from January 2026, which can lead to a big change in the salaries and allowances of the employees.

2.86 fitment factor proposal

The National Council- Joint Consultative Mechanism (NC-JCM) has demanded a 2.86 fitment factor in the proposed Terms of Reference (TOR) for the 8th Pay Commission. Fitment factor means multiplier of salary increase from existing salary. If the government accepts this 2.86 fitment factor, it would mean that the salary of the employees will increase by about three times (2.86 times). This will not only increase the basic salary of employees, but pension and other allowances will also increase accordingly.

How much will LDC employees increase salary?

Lower Division Clerk (LDC) and Level-2 employees are expected to benefit the most in salary. Currently, Level-2 employees get about ₹ 19,900 per month salary under the 7th Pay Commission. If 2.86 fitment factor is applied, then their salary will increase from ₹ 51,480 to about ₹ 57,000 per month. That is, there will be an increase of about ₹ 37,000, which will be considered a major improvement.