8th Pay Commission Likely to Bring 30–34% Salary & Pension Hike for 1 Crore Govt Beneficiaries

The 8th Pay Commission, expected by FY 2026–27, may raise salaries and pensions of over 1 crore central government employees and pensioners by 30–34%.

As per Ambit Institutional Equities, this could boost consumption but may cost the Centre ₹1.8 lakh crore. Basic pay, which forms 51.5% of total income, will rise along with allowances like Dearness Allowance (30.9%), House Rent (15.4%), and Transport (2.2%).

The current fitment factor of 2.57 set by the 7th Pay Commission may be revised, and DA will be reset to zero using the new price index.

Around 44 lakh employees and 68 lakh pensioners will benefit directly.