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The 8th Pay Commission is the next “salary revision system” planned by the Government of India for central government employees and pensioners. In India, a new Pay Commission is usually set up every 10 years to review pay, pensions, and allowances.
Since the 7th Pay Commission was implemented in 2016, the 8th Pay Commission is expected to come into force on January 1, 2026. However, the implementation date has not been officially announced yet.
Once implemented, the 8th Pay Commission is expected to benefit around 50 lakh serving central government employees, including defence personnel, and about 69 lakh pensioners.
Want to understand in detail? Read this article to know the expected implementation date of the 8th Pay Commission and how it could influence the salary structure of the central government staff.
When Will the 8th Pay Commission Be Implemented?
The Government of India has not announced a fixed date for implementing the 8th Pay Commission. Recently, while replying to questions in Parliament, the Minister of State for Finance, Pankaj Chaudhary, stated that the implementation date will be decided at an “appropriate time”.
He also clarified that once the government accepts the commission’s recommendations, funds will be provided in the budget to support them. Interpretation? The government has acknowledged the process but has not committed to a timeline yet.
Signs That a New Pay Revision Was Due!
According to several experts, there are three main indicators that signal a new pay commission will be implemented. Let’s check them out:
| I) Time Gap | II) Level of Dearness Allowance (DA) | III) Fiscal Position |
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Formal Approval of the 8th Pay Commission
Due to the presence of all these three factors, the government has formally constituted the 8th Central Pay Commission. A Cabinet decision in January 2025 approved the proposal in principle. This was followed by a formal resolution dated 3 November 2025, which was placed before the Lok Sabha. This resolution outlined the commission’s structure, role, and scope.
What the Commission Will Review
The “Terms of Reference” of the 8th Pay Commission clearly state that it will review pay scales, allowances, and pensions. This review will cover both current central government employees + pensioners.
What is the Expected Salary Increase Under the 8th Pay Commission 2025?
The 8th Pay Commission is expected to revise the salaries of central government employees by increasing their “basic pay”. The estimated salary increase is projected to be between 30% and 34%. Be aware that this increase will depend on the “fitment factor”, which is a multiplier used to calculate the new basic salary from the existing basic pay. The proposed fitment factor range is between 1.83 and 2.46.
However, when the 8th Pay Commission is implemented, the Dearness Allowance (DA) may be merged into the new basic pay. At present, DA is 55% of the basic salary and is paid separately to offset inflation. Once the new pay structure comes into force, DA could be:
- Reset to zero
and
- Start building up again in future years.
But nothing has been officially confirmed yet. If the DA is indeed reset to zero, the actual increase in take-home salary may be lower than what the fitment factor alone suggests. For more clarity, let’s consider an example:
Example
Mr. A is a central government employee with a current basic salary of ₹18,000 along with a DA of 55%. Now, let’s see how his salary structures may change after the implementation of the 8th Pay Commission:
| Component | Before the 8th Pay Commission | After the 8th Pay Commission |
| Basic Salary | ₹18,000 | ₹32,940 (₹18,000 x 1.83) |
| Dearness Allowance (DA) | ₹9,900 (55% of ₹18,000) | ₹0 |
| Total Salary (Basic + DA) | ₹27,900 | ₹32,940 |
Note: The above calculations are illustrative in nature and are based on an assumed fitment factor of 1.83 and a Dearness Allowance (DA) reset to 0%. As the 8th Pay Commission has not been officially announced or notified by the Government of India, these assumptions are derived from secondary sources and media reports. Actual salary revisions, fitment factors, and DA treatment may differ once official recommendations and notifications are released.
What Can You Observe
- Before the 8th Pay Commission, the employee earned ₹27,900, including DA.
- After the 8th Pay Commission, the basic salary increases to ₹32,940 using the fitment factor.
- However, DA is reset to zero, so it is no longer added to the salary.
- The actual salary increase is ₹5,040 (₹32,940 – ₹27,900).
- It does not represent the full salary increase suggested by the fitment factor alone.
- DA will increase again in future years as inflation-linked revisions resume.
So, you may observe that the fitment factor raises the basic salary, but the merger and reset of DA could reduce the immediate benefit.
In Summary, the 8th Pay Commission Could Lead to Salary Hikes Up to 34%
So now you know that the 8th Pay Commission has been officially formed and will decide how much central government employees and pensioners are paid from 2026 onward. It is expected that the 8th Pay Commission may introduce a fitment factor between 1.83 and 2.46, which could increase basic salaries by up to 34%.
However, no official implementation date has been announced yet, and final decisions will depend on the commission’s recommendations + government approval. Thus, you must wait for official notifications to get clarity on pay scales, allowances, and pensions.
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8th Pay Commission 2025 FAQs
What will the 8th Pay Commission do?
Its main purpose is to revise salaries and pensions of central government employees based on current economic conditions, inflation, and changes in the cost of living. The 8th Pay Commission will examine existing pay structures and recommend new pay scales and allowances.
Has the government confirmed the implementation date of the 8th Pay Commission?
The government has not announced a fixed implementation date for the 8th Pay Commission. However, it has been assured that once the recommendations are accepted, adequate funds will be allocated in the budget.
Does the 8th Pay Commission also apply to the state government employees?
The recommendations of the 8th Pay Commission apply only to active central government employees + pensioners. They do not automatically apply to state government employees, as states must decide separately.
What is the proposed fitment factor under the 8th Pay Commission?
Based on reports and expert estimates, the proposed fitment factor for the 8th Pay Commission is expected to range between 1.83 and 2.46. This factor is used to calculate the revised basic salary from the existing basic pay. However, this range is not official and may change once the commission releases its final recommendations.
Will Dearness Allowance (DA) or Dearness Relief (DR) be merged with basic pay?
The Finance Ministry has stated that there is no proposal at present to merge Dearness Allowance for employees or Dearness Relief for pensioners with basic pay. DA and DR could continue as separate components and may not be permanently added to basic salary under current plans. However, nothing is officially confirmed yet.
Will employees or pensioners receive any interim relief before the implementation of the 8th Pay Commission?
No interim relief has been announced for central government employees or pensioners. The Finance Ministry has confirmed that no temporary salary or pension increase will be provided before the 8th Pay Commission submits its final report and the government decides on its recommendations.
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