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Significant Salary Hike for Government Employees with 8th Pay Commission Implementation

The 8th Pay Commission is poised to significantly increase salaries for government employees, with basic pay rising and allowances adjusted accordingly. However, this positive change comes with higher tax liabilities. For instance, a Level 8 employee's salary could jump to ₹1,22,410 monthly, but after deductions for pension schemes and taxes, the net salary would be approximately ₹104,900. This article delves into the details of the salary adjustments and the financial implications for employees.
By Ambika Singh Nov 8, 2025, 14:01 IST
Significant Salary Hike for Government Employees with 8th Pay Commission Implementation

Overview of the 8th Pay Commission Impact



The upcoming implementation of the 8th Pay Commission is set to bring substantial salary increases for government employees, although it will also lead to a rise in tax obligations. Here’s what you need to know.


Central government employees can expect a positive change as the 8th Pay Commission is on the verge of being enacted, promising a notable boost in salaries.


However, this increase will come with higher tax implications. Let’s break down how much of your salary will be retained after taxes.


For instance, if you are positioned at Level 8, your current basic salary stands at ₹47,600. With the new pay structure, applying a fitment factor of 1.92 will elevate your basic salary to ₹91,392.


Alongside the new basic salary, your allowances will also see an uptick. Employees based in major cities like Delhi, Mumbai, or Bengaluru will receive a House Rent Allowance (HRA) of 30%, which amounts to ₹27,418. Additionally, a travel allowance (TA) of around ₹3,600 will be included.


Reports indicate that your total gross salary could reach ₹1,22,410 monthly, marking an increase of approximately ₹75,000.


Despite the gross salary being ₹1.22 lakh, deductions will apply. These include about ₹9,139 for the National Pension Scheme (NPS), ₹650 for the Central Government Health Scheme (CGHS), and an estimated ₹7,700 for income tax based on applicable tax slabs. Consequently, your net salary will be around ₹104,900 per month.


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