Big update on 8th Pay Commission! Will salaries not increase from 2026? Anxiety increased among crores of employees

The year 2025 is now at the threshold of farewell. Preparations for the New Year celebrations are in full swing, but only one question is revolving in the minds of crores of central employees and pensioners of the country – when will they get the gift of the 8th Pay Commission? Will the salary increase in the new year 2026, which starts after 21 days, or is the wait going to be longer?

When will the salary increase?

There has been a common belief regarding the Pay Commission for years that whenever its recommendations are implemented, their benefits are given retrospectively. Many employees were hopeful that even if the process takes time, the increased salary will be considered from January 1, 2026 and the arrears will also be received accordingly. For him, this date was no less than a deadline, regarding which he was planning in his mind.

But the recent statement given by the Minister of State for Finance in the Parliament has put some brakes on the expectations of the employees. The government clearly says that at present no final decision has been taken on the “date of implementation” of the Eighth Pay Commission. This simply means that no official seal has been given by the government yet regarding the date of January 1, 2026 and the situation is not completely clear.

The matter may drag on till 2027

Before the process of increasing the salary starts, it is necessary that the commission submits its report. For this, first of all the Terms of Reference (ToR) of the Commission is issued, which decides in what scope and direction the Commission will work. The Finance Ministry has released the ToR for the Eighth Pay Commission on 3 November 2025, i.e. the formal process has started.

If we look at the government rules and the timeline of earlier pay commissions, usually the commission takes about 18 months from the date of notification to prepare its detailed report. Accordingly, it is being estimated that the final report of the Eighth Pay Commission may come by mid-2027. In such a situation, those employees who were thinking that their pockets will become heavy at the beginning of the new year, will have to be patient for the time being and may have to wait a little more. Only after the report comes, the government approves it in the cabinet and only after approval the increased salary reaches the accounts.

How much will the salary increase?

Now the biggest question is that when the Eighth Pay Commission will be implemented, how much increase will be seen in the salary. Its entire picture depends on the ‘fitment factor’. At the time of the Seventh Pay Commission, this factor was fixed at 2.57, on the basis of which the basic pay was redesigned.

Now for the Eighth Pay Commission, experts estimate that the fitment factor can be increased to 2.86 or even more. If this happens and the government agrees to it, then there may be a big jump of about 30% to 34% in the old basic salary and pension. Not only this, Dearness Allowance (DA/DR) will also be adjusted according to the new basic pay, due to which there will be a further increase in in-hand salary. In the era of rising inflation, this increase will be no less than a lifesaver for the employees and pensioners.