8th Pay Commission: The 8th Pay Commission has finally been approved. The Union Cabinet has approved the terms of reference for the commission. Now this new pay structure is expected to be implemented from January 1, 2026. Meanwhile, let us know which government employees will be the first to benefit from the 8th Pay Commission.

First benefit to central government employees

Central government employees will be the first to get the benefits of the Eighth Pay Commission. As soon as it is implemented, there will be a direct increase in the salaries of more than 50 lakh working employees. These include employees of some big departments like Indian Railways, Income Tax, Postal Department and Customs.

Armed forces and paramilitary personnel included

Along with this, employees of Indian Army, Navy and Air Force will also be able to avail the benefits of the Eighth Pay Commission. This includes not only officers and soldiers, but also personnel serving in paramilitary forces like BSF, CRPF, CISF, ITBP and SSB. Let us tell you that the pay scales of these employees falling under the jurisdiction of the Central Government will be adjusted according to the new fitment factor.

Benefits for Central Institutions and Autonomous Bodies

Apart from ministries and defense forces, many central educational and research institutions will also benefit from this new salary structure. This includes IIT, IIM, AIIMS, UGC, ICAR and CSIR. Along with this, retired employees working in different sectors will also benefit from the Eighth Pay Commission. There may also be an increase in the pension of these employees.

What could be the fitment factor?

The fitment factor in the Eighth Pay Commission is expected to be between 1.83 and 2.46. That is, if the current basic pay of an employee is ₹ 20000 and the fitment factor is set at 2.5, then the new basic pay will be 20000×2.5=50000. After this increase, allowances like HRA and DA will also be affected. After this the take home pay will be even higher. However, let us tell you that the final fitment factor and pay slab will be decided by the Commission only after evaluating inflation, cost of living and government revenue. This step taken by the Central Government will prove to be a big relief for the central employees and pensioners. According to estimates, there may be an increase of 30% to 34% in the total salary.

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India vs us salary system: The ways of increasing the salary of government employees in India and America are quite different. India has dependence on the Pay Commission, while Personal Management Office and Federal Law in the US handle salary, dearness allowance and job grades.

Pay Commission in India

The salary commission of central government employees and pensioners in India decides the pay commission. This commission is formed in a few years. Its role is to review the existing salary, allowances and pension and also create the structure of the new salary.

Let us tell you that the Pay Commission uses Fitment Factor. It is a multiplier. This multiplier measures the difference between the current pay structure and the proposed salary hike. For example, the Fitment Factor was kept 2.57 by the Seventh Pay Commission. Now suppose the current salary of an employee is 10 thousand and the fitment factor is 2.57. So not the basic salary will be 10 thousand × 2.57 = 25700.

This simply means that the salary of government employees in India increases only when the new pay commission is formed. This is done every 10 years.

How does salary grow in America?

Unlike India, there is no commission based system in America. In America, the government salary is controlled only through Personal Management Office as well as federal law and departmental rules. Employees in America are divided into different grades and levels. The salary here depends on their work, skill, experience and government grades.

Federal Law and Rules

Non -Labor Standard Act decides minimum wage and overtime rules. Labor Dippering Overn issues rules enhancing salary limits for Chhath. Along with this, the President also affects the salary. For example, the Widen administration had increased the minimum wage of the government contract employee to $ 15 per hour. It also included adjustment according to inflation.

Main difference between India and America

The increase in salary in India is done by the Pay Commission and it is at long intervals. But in the US, salary changes are made only through increases related to inflation, federal rules and performance reviews.

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Central Government Employees Salary: The central government has given good news to the employees keeping in mind the upcoming festive season. The festival of Ganesh Chaturthi and Onam is coming. Due to this, premature salary and pension payment has been approved for their employees and pensioners. That is, they will be given salary and pension in advance.

How long will be paid?

According to the Finance Ministry’s Office Memorandum released on August 21 and 22, 2025, central government employees including Defense, Post and Telecom in Maharashtra will get the salary of August on August 26, 2025 (Tuesday). That is, on August 27, before Ganesh Chaturthi, their wages will be credited to their bank account. Similarly, the festival of Onam will be celebrated in Kerala by September 4-5, 2025, so they will also be paid salary and pension on August 25, 2025 (Monday).

This is also mentioned in the circular

The purpose of this decision of the government is to keep in mind that in the festive season, employees face any kind of financial trouble and they can celebrate the festival well with their families. The Finance Ministry has said that these payments will be considered as advance payment. The salary, pension and wages issued will be adjusted in the final settlement of August/September 2025. The circular states, “Thus distributed salary/wages/pension will be considered as advance payment and will be subject to adjustment after each employee/pensioner determines the entire month’s salary/wage/pension.”

Finance Ministry instructions to RBI

The Ministry has also requested the Reserve Bank of India (RBI) to implement the branches of banks in Kerala and Maharashtra to implement the program to pay for salary and pension in advance without any delay. Central government industrial workers in Kerala will also come under the purview of quick payment instructions.

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