8th Pay Commission process begins: Central government employees and pensioners may see 20–35% salary and pension hikes. Revised pay likely from Jan 2026 after Cabinet approval.

The central government has officially initiated the process for the 8th Pay Commission, offering a ray of hope for lakhs of central government employees and pensioners eagerly waiting for revised pay and pensions. The announcement came during the Winter Session of Parliament, although officials clarified that final implementation decisions are still pending.

Rules for 8th Pay Commission Approved

In November 2025, the government approved the rules governing the 8th Pay Commission, granting the panel a period of 18 months to submit its recommendations. The commission will review salaries, allowances, and pensions for central government staff. However, any changes will only take effect after the Union Cabinet gives formal approval. Consequently, employees and pensioners should not expect immediate changes to their pay or pensions.

Expected Salary and Pension Hikes

Based on previous trends and government data, the salary increase under the 8th Pay Commission is expected to range between 20% and 35%, depending on the fitment factor, which is likely to fall between 2.4 and 3.0.

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For example, a central government employee with a basic salary of Rs 18,000 could see their pay rise to approximately Rs 30,000–32,000 once the commission’s recommendations are implemented. Pensioners are also likely to receive higher pension payouts under the revised structure.

The government has confirmed that Dearness Allowance (DA) will continue to remain separate from basic pay, with no current plans to merge the two.

When Will the Revised Pay Be Credited?

The revised pay structure is expected to be effective from January 1, 2026, on paper. However, actual disbursement may be delayed due to the approval process. Historical precedent, such as the 7th Pay Commission, indicates a gap between formal implementation and payments reaching employees’ accounts.

Following the 18-month report submission period, the recommendations will require Cabinet approval and departmental recalculations, meaning revised salaries and pensions are likely to be credited during the 2026–27 financial year.