8th Pay Commission: The 10-year time period of the Seventh Pay Commission ends this month. So, will the 8th Pay Commission be considered effective from January 1, 2026? Now, the central government has said this…
8th Pay Commission : The 10-year time period of the 7th Pay Commission is ending this month. So will the 8th Pay Commission be considered applicable from January 1, 2026? Now the eyes of the central government employees are fixed on the 8th Pay Commission. The new Pay Commission has been formed, its Terms of Reference (ToR) have also been issued. But the government has not yet taken any final decision on when it will start. This update is necessary for more than 50 lakh employees and about 69 lakh pensioners. The 8th Pay Commission will decide the salary, pension and allowances etc.
When will the 8th Pay Commission be implemented?
Responding to a question in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said that the date and funding of the Eighth Pay Commission will be decided later. He added that its ToRs have been notified on November 3, 2025, and the Commission will be required to submit its report within 18 months from the date of its formation. However, it is unclear when the new salary structure will be implemented. Employees were expecting it to be implemented from January 1, 2026, but the government has not yet given its green light.
There is no plan to merge DA with basic salary
The government also clarified that there is currently no proposal to merge dearness allowance (DA) or dearness relief (DR) into basic pay. The minister explained that to protect against inflation, DA and DR are revised every six months based on the AICPI-IW index. Currently, both DA and DR are 55%, which was recently increased by 3% before Diwali. DA is given to employees, while DR is given to pensioners.
Reason for delay in Pay Commission process
The Eighth Pay Commission was announced in January 2025, but it took nearly nine months to finalize its chairman, members, and ToR. Employee organizations allege that the ToR issued does not include information on 6.9 million pensioners, a fact clearly addressed in all previous pay commissions. Furthermore, the implementation date of the new salary structure has not been provided in writing. Several reports claim that the implementation of the Eighth Pay Commission will take two years.
What to expect on the fitment factor?
The thing that employees are waiting for the most is the fitment factor, because the new salary structure is decided on this. The Staff Side of the National Council (JCM) has said that the fitment factor of the 8th CPC could be similar to that of the 7th CPC. According to a report by Ambit Capital, the fitment factor could be between 1.83 and 2.46. If this happens, the minimum basic salary could increase from Rs 18,000 to Rs 32,940 to Rs 44,280. This means that the basic salary is likely to increase almost twofold, although the final decision will depend on the suggestions of the government and the commission.
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