The eagerly awaited 8th Pay Commission has been officially approved by the Union Cabinet in a meeting held at Prime Minister Narendra Modi’s residence.
This decision is set to benefit approximately 49.18 lakh central government employees and 64.89 lakh pensioners.
Additionally, some state governments, like the Delhi government, often adopt the recommendations of the Central Pay Commission, which means state government pensioners may also see an increase in their pensions.
Formation of a Committee to Begin Soon
Central employees’ organizations have long been requesting the formation of the 8th Pay Commission.
Last year, during the budget discussions, Finance Secretary TV Somanathan mentioned that there was still ample time for this process.
Now that the cabinet has given its approval, a dedicated committee will soon be established to work on implementing the commission’s recommendations.
Potential Salary and Pension Increases
Under the 8th Pay Commission, the fitment factor is expected to be set at 1.92, which would raise the minimum salary of government employees from ₹18,000 to ₹34,560.
Similarly, pensioners could see their minimum pension increase to ₹17,280. Adjustments in Dearness Allowance (DA) and Dearness Relief (DR) for pensioners are also likely to be included.
However, some reports suggest the fitment factor might be as high as 2.86, potentially leading to even greater salary and pension hikes.
Implementation Timeline
The 8th Pay Commission is expected to take effect from January 1, 2026.
For reference, the 7th Pay Commission, also led by the Narendra Modi government, was implemented in January 2016. Historically, a new pay commission is introduced every 10 years.