Salary hike remains the main issue in every employee or pensioner body’s discussion with the 8th Pay Commission. The upcoming meetings in Mumbai on October 22 and 23 will be no different when the 8th CPC is set to meet stakeholders. Pay, pension and allowance-related matters are likely to be the main topics of discussion for stakeholders who will attend the meeting.
A basic pay increase in a pay commission impacts the gross salary of an employee as their dearness allowance (DA), house rent allowance (HRA) and transport allowance (TPTA) are also calculated at higher rates. So, what can be the gross salary hike for Level 3-6 central government employees if the 8th Pay Commission decides on a 2.1, 2.28 or 2.57 fitment factor?
What is the gross salary of central government employees?
The gross salary is the basic pay plus allowances that they get every month. Most employees get dearness allowance (DA), house rent allowance (HRA) and transport allowance (TPTA) as allowances with their basic pay. There are many others, such as child education allowance (CEA), hostel subsidy, posting-specific, nature of work-related allowances, but employees get them only when specific conditions are met.
Also Read: DA hike for central government employees: Can Centre announce dearness allowance on October 21, 2026?
Gross pay hikes in last four pay commissions
Relation between basic pay and gross pay hike
If you look at the gross salary hike in the 6th and 7th Pay Commissions, two striking things are that the gross salary hike is 54% in the 6th CPC, while it is just 14.29% in the 7th CPC. This is despite the fitment factor of 2.57 being much higher in the 7th CPC compared to the 6th CPC.
Such a difference was because the DA rate was 47% at the time the fitment factor for the 6th CPC was formed, while ahead of the 7th CPC, it was 125%.
Also Read: 8th Pay Commission: Level 1 salary at Rs 47,160, Rs 54,000 or Rs 69,000? Check Level 1-5 estimates at different fitment factors
At the time of the 6th CPC fitment factor formation, the existing factor was 1.47 (100% basic pay plus 47% DA), so a 1.86 fitment factor provided a 54% hike.
Estimated gross salary hike for Level 3-6 employees at 2.1, 2.28 and 2.57 fitment factors
For current gross salary estimates, we are taking the current 60% DA rate and 30% HRA rate (for employees living in X-category city). For the 8th CPC estimates, we will take DA as 0% since it will be reset in a new pay commission and the HRA rate as 24% since the original HRA for X-category cities in the 7th CPC was 24% and increased to 30% when the DA reached 50% in January 2024. We are not taking any other allowance for calculations.
Aso Read: Postal employees’ annual bonus for 2025-26: Check how much regular staff and Gramin Dak Sevaks can get
Estimated gross salary hike for Level 3 employees at 2.1, 2.28 and 2.57 fitment factors
Assumptions
Estimated gross salary hike for Level 4 employees at 2.1, 2.28 and 2.57 fitment factors
Assumptions
Estimated gross salary hike for Level 5 employees at 2.1, 2.28 and 2.57 fitment factors
Assumptions
Estimated gross salary hike for Level 6 employees at 2.1, 2.28 and 2.57 fitment factors
Assumptions
A basic pay increase in a pay commission impacts the gross salary of an employee as their dearness allowance (DA), house rent allowance (HRA) and transport allowance (TPTA) are also calculated at higher rates. So, what can be the gross salary hike for Level 3-6 central government employees if the 8th Pay Commission decides on a 2.1, 2.28 or 2.57 fitment factor?
What is the gross salary of central government employees?
The gross salary is the basic pay plus allowances that they get every month. Most employees get dearness allowance (DA), house rent allowance (HRA) and transport allowance (TPTA) as allowances with their basic pay. There are many others, such as child education allowance (CEA), hostel subsidy, posting-specific, nature of work-related allowances, but employees get them only when specific conditions are met.
Also Read: DA hike for central government employees: Can Centre announce dearness allowance on October 21, 2026?
Gross pay hikes in last four pay commissions
Pay Commission | Hike in Gross Pay | Fitment Factor | Minimum Basic Salary |
4th Pay Commission | 27.60% | — | ₹ 750 |
5th Pay Commission | 31% | — | ₹ 2,550 |
6th Pay Commission | 54% | 1.86 | ₹ 7,000 |
7th Pay Commission | 14.29% | 2.57 | ₹ 18,000 |
If you look at the gross salary hike in the 6th and 7th Pay Commissions, two striking things are that the gross salary hike is 54% in the 6th CPC, while it is just 14.29% in the 7th CPC. This is despite the fitment factor of 2.57 being much higher in the 7th CPC compared to the 6th CPC.
Such a difference was because the DA rate was 47% at the time the fitment factor for the 6th CPC was formed, while ahead of the 7th CPC, it was 125%.
Also Read: 8th Pay Commission: Level 1 salary at Rs 47,160, Rs 54,000 or Rs 69,000? Check Level 1-5 estimates at different fitment factors
At the time of the 6th CPC fitment factor formation, the existing factor was 1.47 (100% basic pay plus 47% DA), so a 1.86 fitment factor provided a 54% hike.
Estimated gross salary hike for Level 3-6 employees at 2.1, 2.28 and 2.57 fitment factors
For current gross salary estimates, we are taking the current 60% DA rate and 30% HRA rate (for employees living in X-category city). For the 8th CPC estimates, we will take DA as 0% since it will be reset in a new pay commission and the HRA rate as 24% since the original HRA for X-category cities in the 7th CPC was 24% and increased to 30% when the DA reached 50% in January 2024. We are not taking any other allowance for calculations.
Aso Read: Postal employees’ annual bonus for 2025-26: Check how much regular staff and Gramin Dak Sevaks can get
Estimated gross salary hike for Level 3 employees at 2.1, 2.28 and 2.57 fitment factors
Assumptions
Assumptions | |||
Current Basic | ₹ 21,700 | ||
Current Gross Salary | ₹ 41,230 | ||
Current DA rate as on 1 Jan 2026. | 60.0% | ||
Current HRA rate for X-city (DA > 50% threshold) | 30.0% | ||
New DA rate at 8th CPC (resets to 0%) | 0.0% | ||
New HRA base rate for Cat 'X' city | 24.0% |
Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
2.1 | ₹ 45,570 | ₹ 56,507 | 110% | 37% | 0.34 |
2.28 | ₹ 49,476 | ₹ 61,350 | 128% | 49% | 0.38 |
2.57 | ₹ 55,769 | ₹ 69,154 | 157% | 68% | 0.43 |
Assumptions
Current Basic | ₹ 25,500 | ||
Current Gross Salary | ₹ 48,450 | ||
Current DA rate as on 1 Jan 2026. | 60.0% | ||
Current HRA rate for X-city (DA > 50% threshold) | 30.0% | ||
New DA rate at 8th CPC (resets to 0%) | 0.0% | ||
New HRA base rate for Cat 'X' city | 24.0% |
Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
2.1 | ₹ 53,550 | ₹ 66,402 | 110% | 37% | 0.34 |
2.28 | ₹ 58,140 | ₹ 72,094 | 128% | 49% | 0.38 |
2.57 | ₹ 65,535 | ₹ 81,263 | 157% | 68% | 0.43 |
Assumptions
Current Basic | ₹ 29,200 | ||
Current Gross Salary | ₹ 55,480 | ||
Current DA rate as on 1 Jan 2026. | 60.0% | ||
Current HRA rate for X-city (DA > 50% threshold) | 30.0% | ||
New DA rate at 8th CPC (resets to 0%) | 0.0% | ||
New HRA base rate for Cat 'X' city | 24.0% |
Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
2.1 | ₹ 61,320 | ₹ 76,037 | 110% | 37% | 0.34 |
2.28 | ₹ 66,576 | ₹ 82,554 | 128% | 49% | 0.38 |
2.57 | ₹ 75,044 | ₹ 93,055 | 157% | 68% | 0.43 |
Assumptions
Assumptions | |||
Current Basic | ₹ 35,400 | ||
Current Gross Salary | ₹ 67,260 | ||
Current DA rate as on 1 Jan 2026. | 60.0% | ||
Current HRA rate for X-city (DA > 50% threshold) | 30.0% | ||
New DA rate at 8th CPC (resets to 0%) | 0.0% | ||
New HRA base rate for Cat 'X' city | 24.0% |
Fitment Factor | Revised Basic | New Gross Salary | Basic Pay Hike | Gross salary hike | Ratio |
2.1 | ₹ 74,340 | ₹ 92,182 | 110% | 37% | 0.34 |
2.28 | ₹ 80,712 | ₹ 1,00,083 | 128% | 49% | 0.38 |
2.57 | ₹ 90,978 | ₹ 1,12,813 | 157% | 68% | 0.43 |
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