This Diwali, government employees may have an extra reason to smile.
The 8th Pay Commission is expected to be formed very soon. According to reports, it could be set up by Diwali 2025 (20–22 October), and work will start quickly.
Unlike earlier commissions, this time the report will not be delayed and is likely to be prepared within just 8 months.
That means employees won’t have to wait long for good news.
Formation and Members of the 8th Pay Commission
When will it be formed?
Earlier, it used to take a long time to finalize the Terms of Reference (ToR) and complete the formation process.
But this time, the government plans to constitute the 8th Pay Commission by October 2025, just around Diwali.
How many members will it have?
This time, there is a proposal to include 6 members in the panel—one chairperson and five experts.
They will examine employees’ needs, inflation, and salary structures across categories.
Timeline for Report and Implementation
How much time will it take?
The 6th and 7th Pay Commissions took 15–18 months to complete their reports.
However, the government now wants the 8th Pay Commission’s recommendations ready in just 8 months.
This means employees may begin receiving the revised salaries as early as 2026.
When will it be implemented?
As per sources, the new pay structure is expected to be implemented from January 1, 2026.
Even if there’s a slight delay, employees will receive arrears, so no benefits will be lost.
Salary Increase: Fitment Factor and DA
Fitment Factor
The fitment factor plays a key role in salary calculation. This time, it is expected to be 1.92, which will directly raise employees’ basic pay and overall salary.
Effect of Dearness Allowance (DA)
Current DA: 55%
From July 2025: 58% (expected)
By January 2026: Likely to reach 61%
However, once the new pay structure under the 8th CPC is implemented, DA will reset to zero and start again based on the revised scale.
Expected Salary Hike: Example of Level-4 Employee
| Description | 7th CPC (Current) | 8th CPC (Expected) | Difference |
|---|---|---|---|
| Basic Pay (Level-4) | ₹25,500 | ₹48,960 (with 1.92 fitment factor) | +₹23,460 |
| DA (61%) | ₹15,555 | ₹0 (reset initially) | -₹15,555 |
| Total Salary (Basic + DA) | ₹41,055 | ₹48,960 | +₹7,905 |
| Other Allowances (HRA, TA, etc.) | ₹9,000 (avg.) | ₹12,000 (avg., on higher basic) | +₹3,000 |
| Total Monthly Salary | ₹50,000–52,000 (avg.) | ₹60,000–62,000 (avg.) | +₹10,000 |
