8th Pay Commission To Triple Medical Allowance and Raise Minimum Salary to INR 27,000? Check Details

8th Pay Commission To Triple Medical Allowance and Raise Minimum Salary to INR 27,000? Check Details

New Delhi, June 26: The Central Government is gearing up for a significant restructuring under the 8th Pay Commission, which will impact over one crore employees and pensioners. While the official announcement of the commission members and the Terms of Reference (ToR) is still awaited, early indications point toward sweeping changes not just in salaries but also in key allowances. The 34th SCOVA (Standing Committee of Voluntary Agencies) meeting held in March 2025 proposed a threefold increase in the Fixed Medical Allowance (FMA) for pensioners—from the current INR 1,000 to INR 3,000 per month. This long-pending demand is being considered essential due to rising healthcare costs and inflation. If approved in the ToR, the hike may come into effect from January 1, 2026. 8th Pay Commission Fitment Factor: What Central Government Employees Can Expect in New Salary Structure. Another major change under consideration is the fitment factor, which was 2.57 in the 7th Pay Commission. Reports suggest a likely increase to 2.8 or even 3.0, potentially raising the minimum basic salary from INR 18,000 to INR 26,000–INR 27,000, and pension from INR 9,000 to around INR 25,000. However, these figures remain speculative until officially notified. 8th Pay Commission Delay: Who Will Be Eligible for Arrears If Salary Hike Is Implemented After January 2026? Changes are also expected in House Rent Allowance (HRA), Travel Allowance (TA), and other benefits, with special focus on metro vs rural disparity. Additionally, several outdated allowances may be scrapped for efficiency. The government is also mulling over merging Dearness Allowance (DA) with basic pay, which may impact how future increments are calculated. Despite the buzz, implementation might be delayed as it usually takes 18–24 months post-commission formation. For now, all eyes are on the Centre to make its official move.

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