There is fresh movement on the 8th Pay Commission, bringing new hope for around 5.5 million central government employees and 6.9 million pensioners.
Nearly 10 months after the Terms of Reference (ToR) were approved, the Commission has picked up pace.
September has also brought several important updates, including a possible DA hike, the Commission’s state visits, and fresh discussions on pension revisions. Here’s everything you need to know.
DA May Increase to 63%
Central government employees and pensioners are expected to receive the July 2026 Dearness Allowance (DA) and Dearness Relief (DR) announcement in September.
After a 2% increase in January 2026, the current DA stands at 60%. Based on the latest AICPI-IW data, experts expect another 3% hike, which could take the total DA to 63%.
According to Manjeet Singh Patel, President of the All India NPS Employees Federation, the DA announcement is usually made in September, although it can sometimes be delayed until October.
8th Pay Commission Continues State Consultations
The 8th Pay Commission is visiting different states and Union Territories to gather feedback from employee organisations and other stakeholders.
The Commission completed its two-day visit to Jaipur on September 1. It will next visit Puducherry on September 8, Chandigarh on September 16 and 18, and Bengaluru on October 7 and 8.
Earlier, meetings were also held in Delhi, Ladakh, Jammu and Kashmir, Telangana, Maharashtra, West Bengal, and Uttar Pradesh.
Pension Revision Demand Gets New Attention
The issue of revising pensions for retired employees has moved forward.
The Department of Personnel and Training (DoPT), through an office memorandum dated August 18, 2026, has forwarded requests from the All India Defence Employees Federation
and the All India RMS, MMS & Postal Pensioners Association to the Department of Expenditure under the Ministry of Finance.
These organisations want the 8th Pay Commission’s Terms of Reference to clearly include pension revision for those who retired before January 1, 2026.
They have also referred to the Fourth Pay Commission, where similar changes were made for earlier pensioners.
Why Salaries Could Rise More Despite a Lower Fitment Factor
Employee organisations believe that salaries may increase more under the 8th Pay Commission even if the fitment factor is lower than the 7th Pay Commission.
According to them, the 7th Pay Commission used a 2.57 fitment factor, but the high DA of 125% at that time reduced its overall benefit.
This time, since the DA level is lower, even a fitment factor of around 2.1 could provide a net salary benefit of about 53%, compared to nearly 32% under the 7th Pay Commission.
When Will the 8th Pay Commission Be Implemented?
The 8th Pay Commission was set up in November 2025 and has been given 18 months to submit its report.
The government is aiming to implement its recommendations from January 1, 2026.
However, the final rollout will happen only after the Union Cabinet approves the Commission’s recommendations.
