When will the 8th Pay Commission apply, how much will the salary of central employees increase? Read update

8th Pay Commission: The Modi government at the Center had announced the formation of the 8th Pay Commission in January 2025, but no official notification has been issued regarding its members and Terms of Reference (TOR). Tor means the scope and responsibilities of the Commission, which determine the aspects that the Commission will consider.

Let us tell you that the 8th Pay Commission is expected to change the salary and pension structure of central employees and pensioners. Although its implementation may be delayed, employees will get arrears from the retrospective effect from 2026. Central government employees and pensioners are expecting changes in salary structure from this commission.

These allowances will end!

Some media reports states that like the Seventh Pay Commission, this time some allowances can be abolished or mixed with large allowances to simplify the pay structure. These may include travel allowance, special duty allowance and small regional allowances.

Salary based on fitment factor

The basis of salary hike will be ‘Fitment Factor’, which is a multiplier to apply to the basic salary. According to analysts estimates, this factor can range between 1.83 and 2.86, ie employees’ salary can increase by about 13% to 34%. Currently, employees are getting 55% dearness allowance (DA).

On the implementation of the 8th Pay Commission, this dearness allowance will become zero and directly add to the original salary. The effect of this will be that the initial increase will be limited to some extent, but employees will get long -term benefits, as pension is also related to basic salary and dearness allowance.

When will it be implemented?

Given the experience of previous pay commissions, experts estimate that this time also the implementation of the commission’s recommendations may take some time. The commission’s recommendations are believed to be applicable by the beginning of 2028, although the salary hike and arrears will be calculated from January 1, 2026. This decision will directly benefit about 49 lakh central employees and 65 lakh pensioners.

This means that overall it will affect the income and pension structure of more than one crore people. Employees and pensioners hope that the 8th Pay Commission will not only increase the basic salary and pension, but will also make the salary structure simple and more transparent by incorporating dearness allowance (DA) and other small allowances.