8th Pay Commission News: The formation of the 8th Pay Commission and its recommendations have always been a matter of curiosity for central employees and pensioners . This commission not only brings an increase in their salary and pension, but also affects their standard of living. Let us discuss in detail the latest news, possible changes and expectations related to the 8th Pay Commission by central government in this article.
Constitution and timeline of 8th Pay Commission
According to the latest information, the central government had announced the formation of the 8th Pay Commission in January 2025. According to various media reports and sources, it is also being reported that the panel (team) of this commission can be formed by May 2025. As soon as this team is formed, the commission will start its work.
However, the formation process is not yet complete. According to the report, the appointment of the chairman of the commission, two members and a secretary level officer is yet to be done. Finance Minister Nirmala Sitharaman had admitted in the Lok Sabha in March 2025 that the 8th Pay Commission has been constituted, but she also added that the terms of reference (ToR) of the commission and the time limit for submitting the report have not been decided yet.
Usually, the Pay Commission takes 15 to 18 months to prepare its report . Accordingly, the report of the 8th Pay Commission is expected by the end of 2026 or early 2027 .
When will the 8th Pay Commission be implemented?
The 7th Pay Commission recommendations were implemented from 1 January 2016, and its term ends on 31 December 2025. On the same lines, the 8th Pay Commission recommendations are likely to be implemented from 1 January 2026. Even though the report may take some time to come, it is believed that it will be considered effective from 1 January 2026 and employees will also get their arrears .
However, some reports are also indicating that if the report comes by March 2026, it may take a few more months to implement it, which may cause a slight delay in getting the new salary from January 2026.
8th pay commission employees salary hike
The most important aspect of the Pay Commission recommendations is the fitment factor . It is a multiplier by which the old basic pay is converted into the new pay scale. In the 7th Pay Commission, the fitment factor was fixed at 2.57 , which increased the minimum basic pay from ₹7,000 to ₹18,000.
It is not yet clear what will be the fitment factor in the 8th Pay Commission, but many speculations are being made about it:
- Demands of Employee Unions: Various employee unions are demanding a higher fitment factor. Some have demanded a fitment factor of 2.86 so that there can be a substantial increase in wages and pensions.
- Expert estimates: Some experts believe that the fitment factor could be between 1.92 to 2.86 .
- Potential Salary Increase:
- If the fitment factor is 1.92 , an employee with a current basic pay of ₹18,000 may have a salary of around ₹53,568 (after adding DA to the basic pay).
- If the fitment factor remains 2.57 (as it was earlier), the salary may increase to ₹71,703 .
- And if the fitment factor is 2.86 , the salary can reach up to ₹79,794 .
- According to some reports, the basic salary may increase by 40 to 50% .
- According to an analysis by Goldman Sachs, the salary of a mid-level government employee may increase by ₹14,000 to ₹19,000 per month.
It is important to note that these are all estimates and the final decision will depend on the commission’s recommendations and government approval.
Adjustment of Dearness Allowance (DA)
Usually, when a new pay commission is implemented, the existing dearness allowance (DA) is merged with the basic salary, and after this the calculation of DA starts again from zero. The same is expected from the 8th Pay Commission. Recently, DA has increased to 55% under the 7th Pay Commission . If this 55% DA is merged with the basic salary, it will be a huge increase in itself, and then the fitment factor will be applied to this increased basic salary.
Possible change in the method of DA calculation
Another important discussion is that the government can change the method of calculation of dearness allowance in the 8th Pay Commission. If sources are to be believed, the government can change the base year for DA calculation . Currently, dearness allowance is calculated on the basis of AICPI-IW (All India Consumer Price Index – Industrial Workers) and its base year is 2016. Change in the base year can affect the entire calculation.
Good news for pensioners too
The 8th Pay Commission will make recommendations not only for serving employees but also for pensioners . This is also likely to increase the pension of about 65 lakh pensioners of the country.
Impact of 8th Pay Commission
The recommendations of the 8th Pay Commission will directly affect about 50 lakh central government employees (including security forces) and 65 lakh pensioners in the country . Apart from this, the employees of the state governments also usually revise their pay scales in accordance with the recommendations of the Central Pay Commission, which will also benefit lakhs of state employees.
conclusion
The formation of the 8th Pay Commission and its recommendations is a significant event for central employees and pensioners. While the final report and its implementation are still some time away, early indications point to a decent hike in pay and pension.
The fitment factor, adjustment of dearness allowance and possible changes in the method of DA calculation are some of the key areas that all eyes will be on. As the commission’s proceedings progress, the situation will become clearer. Until then, it is important to keep an eye on reliable sources for the latest updates.