The Union Cabinet has officially approved the 8th Pay Commission during a meeting held at Prime Minister Narendra Modi’s residence.
This decision is expected to benefit around 49.18 lakh central government employees and 64.89 lakh pensioners.
Additionally, state governments, such as Delhi, often follow the recommendations of the Central Pay Commission. As a result, state government pensioners may also see an increase in their pensions.
Committee Formation to Start Soon
Central employees’ organizations have been requesting the formation of the 8th Pay Commission for a long time.
Last year, Finance Secretary TV Somanathan mentioned during budget discussions that there was still time for this process.
Now, with the Cabinet’s approval, a special committee will be formed to work on implementing the commission’s recommendations.
Expected Increases in Salary and Pensions
The 8th Pay Commission is likely to introduce a fitment factor of 1.92, which could raise the minimum salary of government employees from ₹18,000 to ₹34,560.
Pensioners may also see an increase in their minimum pension to ₹17,280.
Changes to Dearness Allowance (DA) and Dearness Relief (DR) are expected to be part of the recommendations.
There are reports suggesting the fitment factor could go up to 2.86, potentially leading to even higher salaries and pensions.
Implementation from January 2026
The 8th Pay Commission is expected to come into effect on January 1, 2026.
For comparison, the 7th Pay Commission, also introduced under the Narendra Modi government, was implemented in January 2016. Historically, a new pay commission is introduced every 10 years.
Timeline for Implementation
The 8th Pay Commission is set to be implemented from January 1, 2026.
For comparison, the 7th Pay Commission, also introduced by the Modi government, took effect in January 2016. Typically, a new pay commission is introduced every 10 years.
