8th Pay Commission: ‘Pay Matrix’ of 7th Pay Commission will be applicable in 8th Pay Commission? your new salary will be made with this ‘magical’ formula!
8th Pay Commission Exclusive: There is a relief news for government employees. The pay matrix of the 7th Pay Commission will be the basis of the 8th Pay Commission. With the new fitment factor 1.92, the basic salary can increase from ₹ 18,000 to ₹ 34,200. Along with this, there is a possibility of change in HRA, TA and insurance amount. Know the complete details.
8th Pay Commission Exclusive: The preparation of the 8th Pay Commission may be in the initial stage, but another ‘exclusive’ news is coming out about the 8th Pay Commission for central employees. If sources are to be believed, this time no new ‘pay-matrix’ will be created to decide your salary, rather the superhit ‘pay-matrix’ prepared during the 7th Pay Commission will become the basis of the 8th Pay Commission. The only difference will be that new data and fitment factor will be included in it. This will lead to a significant increase in the salary. But, this increase in salary will be prepared by a ‘magical’ formula.
Why does the formula of the 7th also fit in the 8th?
‘Pay Matrix’ is a very important tool for deciding the salary of central employees. The 7th Pay Commission had introduced a detailed and logical pay matrix, which simplified the complex system of various pay bands and grade pay. Now according to the ‘exclusive’ information coming, instead of creating a completely new matrix for the 8th Pay Commission, the existing 7th Pay Commission pay matrix can be carried forward. The structure of the 18-level pay matrix prepared during the 7th Pay Commission is based on the Dr. Aykroyd Formula. This time only data will be updated in this matrix – that is, new fitment factor and revised minimum salary.
Dr. Aykroyd’s ‘magical’ formula
The foundation on which the pay matrix of the 7th Pay Commission stands is the formula of ‘Dr. Wallace Aykroyd’. This formula helps in determining the minimum salary based on the nutritional needs of an average Indian adult. The minimum salary is decided on the basis of this formula and then the various levels of the pay matrix develop accordingly. Now that the basic structure of the pay matrix is likely to remain the same, the biggest work is to be done on the ‘fitment factor’. The fitment factor is the multiplier by which the existing basic salary is multiplied to get the new basic salary.
What will be the fitment factor? How will the salary increase?
Fitment factor means the coefficient by which the current basic pay is multiplied to determine the new salary.
If a fitment factor of 1.92 is applied
Current minimum basic salary = ₹18,000
New basic salary = ₹18,000 × 1.92 = ₹34,560
This can lead to a direct increase of ₹16,560 in the minimum salary. However, the final decision depends on the government’s approval. This is just the basic pay. Dearness Allowance (DA), House Rent Allowance (HRA), Travel Allowance (TA) and other allowances will also be added to this, which will increase the total salary even more.
Possibility of level merging in pay matrix
Another important change that can be seen in the 8th Pay Commission is the merger of pay levels. Currently, there are a total of 18 levels in the pay matrix. There are reports that the government may merge some levels so that the number of grades is reduced and promotion or pay-upgrade can be made easier. This can make the salary structure more simple and transparent.
How can the merger happen?
As discussed earlier, the proposal is that the initial 6 levels can be merged into 3 (eg Level 1+2 = New A, Level 3+4 = New B, Level 5+6 = New C). If this happens, then there can be an immediate big jump in the basic salary of the lower level employees and the path of promotion can also be smoothened.
There will also be changes in HRA and TA
Amendments are also possible regarding HRA (House Rent Allowance) and TA (Travel Allowance) in the new Pay Commission. With the increase in salary, HRA will be calculated on the new basic, due to which this allowance can also increase. The amount and eligibility slabs of TA can be changed in some categories. The rates of house rent allowance (HRA) can be revised considering the categories of cities (X, Y, Z) and the current level of inflation. Travel allowance (TA) can also be revised according to the current circumstances, especially when DA crosses a certain limit.
Insurance amount will be revised for employees
If the employee dies during government duty, the current insurance amount is very low. According to sources, this can also be considered in the new pay commission. The proposed insurance cover can be increased so that the family can get better financial assistance.
When can the new pay commission be implemented?
Although the government has not yet formally constituted the 8th Pay Commission, it is likely to be implemented from 2026. If its notification is issued by the end of 2025, then it can be considered effective from January 1, 2026. In such a situation, employees can also get arrears.
Process and Final Decision
There is a prescribed process for taking a final decision on pay-matrix, fitment factor, level merger and other allowances.
The 8th Pay Commission will receive suggestions and memoranda from various employee organizations, experts and government departments.
The Commission will submit its recommendations to the government after thorough deliberation and calculations on all these.
The government (usually the cabinet) will consider these recommendations and approve whatever it deems appropriate.
Only after this the new pay structure and other changes will come into effect, potentially from January 1, 2026.
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Many expectations, but the wait is a little long
Maintaining the old pay matrix in the 8th Pay Commission will be a balanced decision of the government, which will simplify the process and employees will know the estimated salary benefits in advance. A huge jump in salary is certain on the basis of fitment factor 1.92, but the central government will have to give the final approval for this. At present, all eyes are on the official announcements and recommendations of the 8th Pay Commission. The wait may be a little long.
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