Around 44 lakh central government employees and 68 lakh pensioners are eagerly waiting for the Eighth Pay Commission to be implemented.
Earlier this year, the Union Cabinet approved the formation of the 8th Pay Commission to revise salaries and pensions.
However, despite its formation, employees will have to wait a bit longer for an official announcement.
When Will the 8th Pay Commission Come into Effect?
The recommendation report of the Eighth Pay Commission is expected to be submitted to the government by the end of 2025.
According to a report by Ambit Institutional Equities, shared by Mint, the new pay commission may be implemented from January 2026.
However, the actual implementation depends on two things — when the report is submitted and when the central government gives its approval.
Some experts believe that the pay commission may finally come into effect in the financial year 2027.
Expected Hike in Salary and Pension
After the new pay commission is implemented, central employees’ salaries and pensions could see a hike of around 30% to 34%.
This increase would lead to an additional financial burden of about ₹1.80 lakh crore on the government.
The final salary and pension hike will be based on the fitment factor — which adjusts pay based on inflation, employees’ needs, and the government’s financial situation.
The Pay Commission also reviews allowances, bonuses, and other benefits provided to employees.
Pay Commission is Set Up Every 10 Years
The government sets up a new pay commission roughly every 10 years to review and revise salaries of central employees.
The first pay commission was formed in 1946. Each commission takes into account inflation, the country’s economic condition, and income disparities while recommending changes.
