8th Pay Commission: As Assam Becomes First State To Set Up 8th CPC, Know How and When Other States Will Implement Pay Revisions

Mumbai, January 7: As the proposed implementation date for the 8th Central Pay Commission (CPC) arrived on January 1, 2026, the spotlight has shifted to how the state governments across the country will manage their own salary and pension revisions. While the Union Cabinet formally initiated the 8th CPC process in 2025, state governments are navigating varying timelines, with some states, such as Assam, taking proactive steps while others maintain a traditional "wait and watch" approach.

As of January 2026, central government employees are anticipating a retrospective salary hike. However, for the millions of state government employees across the country, the wait for revised paychecks may range from several months to a few years. 8th Pay Commission: Will Central Government Employees Have to Wait Until 2027 for Salary Hike?

Assam Leads the Way, Sets Up 8th Pay Commission

In a significant departure from standard practice, Assam became the first state in the country to officially constitute its 8th State Pay Commission on January 1, 2026. Chief Minister Himanta Biswa Sarma announced that the commission, headed by former Additional Chief Secretary Subhas Das, has been given 18 months to submit its recommendations. This move underscores a growing trend of states taking administrative charge early to manage fiscal planning, rather than waiting for the final central notification, which is often delayed by administrative processing.

Variations in State Timelines and Cycles

Unlike the central government, which typically operates on a strict 10-year cycle, many states follow their own independent schedules for constituting a pay commission. The lack of a statutory deadline for states to implement the 8th CPC results in a staggered national landscape:

• Kerala is currently operating under its 11th Pay Commission.
• Karnataka is following its 7th pay commission.
• Punjab is in the midst of its 6th pay commission.

According to industry experts, while "early adopting" states may implement revisions within six months to a year of the Centre, most states take between one and three years to assess the fiscal impact on their local budgets. 8th Pay Commission DA Hike: When Will It Be Announced and How Much Increase Is Expected.

The Fitment Factor: Matching the Centre

A key concern for employees is whether state hikes will match the central "fitment factor" - the multiplier used to determine new basic pay. While many states align closely with the Centre to remain competitive, slight variations are common to suit regional economic conditions.

During the 7th Central Pay Commission (CPC) cycle, while the Centre used a fitment factor of 2.57, Punjab adopted 2.59, and Uttar Pradesh matched the Centre exactly. For the 8th CPC, with central projections for the fitment factor ranging between 1.83 and 2.86, state commissions will face the challenge of balancing employee expectations against their respective state exchequers.

Arrears and Retroactive Pay

A major relief for employees is the precedent of retrospective implementation. Even if a state government notifies its new pay scales in 2027 or 2028, the benefits are usually backdated to January 1, 2026. This results in a lump-sum payment of "arrears" for the intervening period. However, the actual eligibility for these arrears depends entirely on the "Terms of Reference" (ToR) set by individual state governments.

While the All India NPS Employees Federation notes that pay structures are largely similar across the country, the timing of these lump-sum payouts remains one of the most unpredictable variables for state staff.

The Review Process for New Commission in State

The functioning of a state pay commission mirrors the central process:

Appointment: A chairman and committee members (often retired judges or senior bureaucrats) are named.

Deliberation: The panel assesses inflation, state revenue, and employee demands.

Reporting: A formal report is submitted to a Group of Ministers.

Notification: The state cabinet approves and officially notifies the new pay matrix.

As the 8th CPC cycle officially begins this month, the speed at which other states follow Assam's lead will be a critical factor in determining the financial outlook for India’s regional public sector workforce.

(The above story first appeared on LatestLY on Jan 07, 2026 05:37 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).