The Central Government has officially approved the Terms of Reference (ToR) for the 8th Pay Commission, covering nearly 50 lakh employees and 65 lakh pensioners.

The commission now has 18 months to submit its report, which will recommend the new fitment factor — the key formula used to decide the revised basic salary.

When Will It Be Effective?

The 8th Pay Commission is expected to come into effect from January 1, 2026. If there’s any delay, the revised salary will include arrears from that date.

What Is the Terms of Reference (ToR)?

The ToR acts as a guideline for the Commission’s work. It defines what the Commission will review — including salaries, allowances, and pensions. Without this, the process cannot begin.

Expected Salary Hike

In the 7th Pay Commission, the fitment factor was 2.57, which raised the minimum basic pay from ₹6,000 to ₹18,000.

This time, reports suggest it could range between 1.86 to 2.47. If 2.47 is applied, the new basic salary could be ₹44,460. If 1.86, then it could be around ₹33,480.

What About Gross Salary?

The gross salary includes Basic Pay + House Rent Allowance (HRA) + Dearness Allowance (DA).

For now, assume: DA = 0%, HRA = 30% (for metro cities)

If the basic pay is ₹44,460, the total gross salary would be:₹44,460 + ₹13,338 (HRA) = ₹57,798

Key Takeaway

8th Pay Commission effective from Jan 2026. Fitment factor may go up to 2.47x. Basic pay could rise from ₹18,000 to around ₹44,460. Gross salary may reach ₹57,798 (metro cities).