Biggest Update on 8th Pay Commission! Salary and pension will change, how much salary will increase in fitment factor?

• 8th Central Pay Commission
• How much salary will be received, how much salary will increase
• IMPORTANT DETAILS AFTER CONSTITUTION OF COMMISSION

Lakhs of central employees and pensioners across the country are currently eyeing the 8th Pay Commission. There has been speculation for a long time about hike in salary, pension and allowances. Now, with the formation of the commission, it is clear that there could be major changes in the government’s pay structure in the coming years. However, the date of implementation and scale of increase is yet to be decided.

How many people will be affected by the 8th Pay Commission?

The 8th Central Pay Commission will revise the pay and pension of more than 5 million central employees and approximately 69 lakh pensioners. This means it will directly affect the income of a large section of the country. The tenure of the 7th Pay Commission ends on 31st December 2025, so employees hope that the new pay structure will be implemented on time. The government has indicated that the revised pay and pension will be effective from January 1, 2026.

8th Pay Commission: Pay hike possible from 1st January 2026? Millions of government employees got curious

Composition and duration of the Commission

Union Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha that the 8th Pay Commission was constituted on November 3, 2025. It is chaired by Justice Ranjan Prabha Desai. Professor Pulak Ghosh has been appointed as part-time member and Pankaj Jain as member secretary. The Commission has been given approximately 18 months to prepare its recommendations. As a result, the report is expected around 2027.

Fitment factor to determine growth

The amount of increase in salary and pension will mainly depend on the fitment factor. Fitment factor is a multiplier used to multiply the current basic salary and pension to determine the new amount. If the fitment factor is set around 2.15, the base salary of the employees can be doubled. This will affect not only salaries but also HRA, pension and other allowances.

Government’s clear answer on merger of Dearness Allowance (DA) and Dearness Allowance (DR).

Over the past few months, there has been talk on social media and among employee unions that Dearness Allowance (DA) and Dearness Allowance (DR) may be merged with basic pay. However, the Finance Ministry has clarified that there is no such proposal at present. Dearness Allowance and DR will continue to increase every six months based on AICPI-IW data. This clarification has put an end to many rumours.

Due date and expected implementation date

Even salary and pension 1 January 2026 can be considered effective from, but actual payments may take time. Experts believe that the recommendations of the 8th Pay Commission can be implemented in FY 2028. As a result, employees and pensioners are likely to receive arrears from January 2026 till the date of implementation. It is estimated that this arrears may be around five quarters.

8th Pay Commission: Big update on 8th Pay Commission! From when will it be applicable for central employees? Know in detail

What will be the financial burden on the government?

of Pay Commission The effect is not only limited to the employees, but also creates huge pressure on the government exchequer. According to experts, the combined burden on the central and state governments could exceed Rs 4 lakh crore. If arrears are included, this figure can reach up to Rs 9 lakh crore. The government has assured that adequate provision will be made in the budget to implement the commission’s recommendations and maintain fiscal balance.

Employee Expectations and Government Challenges

While employees and pensioners expect better wages and pensions from the Eighth Pay Commission, the government faces the challenge of maintaining fiscal discipline. In times of rising inflation, this commission can provide relief to lakhs of families. In the coming months, all eyes will be on the commission’s recommendations and the government’s decisions, as these decisions will determine how beneficial the new pay system will be.