8th Pay Commission: Basic Pay vs Grade Pay

Central government employees await 8th Pay Commission salary changes.

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Oct 18, 2026

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8th Pay Commission: Basic Pay vs Grade Pay

Central government employees await 8th Pay Commission salary changes.

In brief

Central government employees await 8th Pay Commission salary changes. The 8th Pay Commission will revise basic pay, grade pay, and pay levels for central government employees using a fitment factor of 3.833 to combat inflation. Originally reported by mint.

8th Pay Commission Meeting

The 8th Pay Commission holds Mumbai meetings on October 22 and 23, 2026, after Dussehra.

Employee Unions Demand

The Staff Side of the National Council (Joint Consultative Machinery) requests a minimum basic pay of ₹ 69,000 with a fitment factor of 3.833.

Pay Commission History

The 6th Pay Commission used a fitment factor of 1.86, while the 7th used 2.57.

Basic Pay Definition

Basic pay is the core component of an employee’s salary, excluding allowances like Dearness Allowance and House Rent Allowance.

Grade Pay Change

The 7th Pay Commission replaced grade pay with a pay matrix of 18 levels to simplify salary determination.

Expert Explanation

Adhil Shetty, CEO of BankBazaar, states basic pay is the base for allowances, grade pay denoted seniority, and the 8th Pay Commission uses a pay matrix.

“Basic pay is the core component of a government employee’s salary and the base on which allowances such as DA and HRA are calculated. Grade pay was introduced under the 6th Pay Commission to denote seniority within a pay band. The 7th Pay Commission replaced this structure with a pay matrix of 18 pay levels. For instance, Level 1 starts at ₹ 18,000, while Level 7 begins at ₹ 44,900. Under the 8th Pay Commission, the final fitment factor will be key in determining the revised basic pay across each of these levels.”

Next Steps

The 8th Pay Commission will submit its final report to the central government by May-June 2027 after 18 months.

Here's the gist

The 8th Pay Commission will revise basic pay, grade pay, and pay levels for central government employees using a fitment factor of 3.833 to combat inflation.

Read the original on mint

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