8th Pay Commission: Pay Hike Likely To Depend On THIS Formula; How Much Minimum Salary And Minimum Pension Expected To Be Hiked?

The Modi Cabinet on 16 January 2026 approved setting up the 8th Pay Commission which will result in revision of salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners.

The 8th Central Pay Commission, once set up and recommendations are accepted, will impact the salary brackets of approximately 49 lakh government employees and 68 lakh pensioners. Vaishnaw said consultations will be held with central and state governments and other stakeholders.

Media reports say that the salary calculation formula for the 8th Pay Commission will be akin to the pay calculation it was based for 7th Pay Commission. The Aykroyd formula was the base for deciding salaries of government employees in the 7th Pay Commission.

The formula is based on recommendations of Wallace Ruddell Aykroyd — a well known nutritionist and first director of the Department of Nutrition at FAO (Food and Agricultural Organisation) — whose recommendations were based on the food and clothing requirements of the people of a country. The formula gauges wages or payout of employees based on the family's nutritional requirement

Minimum Pay: Based on the Aykroyd formula, the minimum pay in government is recommended to be set at Rs 18,000 per month.

Maximum Pay: Rs 2,25,000 per month for Apex Scale and Rs 2,50,000 per month for Cabinet Secretary and others presently at the same pay level.

As per media reports the pay panel will base the fitment factor in the range of 1.92 to 2.86. Should the recommendation of 2.86 fitment factor is given a green signal, the minimum basic salary of a government employee would go up from Rs 18,000 per month to Rs 51,480. The minimum pension, based on the same factor will go up to from Rs 9,000 currently to Rs 25,740.

The chairman and two members of the Commission will be appointed soon. The decision to set up the 8th Pay Commission was taken by Prime Minister Narendra Modi, I&B Minister Ashwini Vaishnaw said.