8th Pay Commission: How Much Salary Hike Can Government Employees Expect? Check Key Details
Mumbai, December 15: With the 10-year tenure of the 7th Pay Commission set to end on December 31, 2025, attention has shifted to the progress and possible impact of the 8th Central Pay Commission. Central government employees and pensioners are closely tracking two key issues: when the new pay structure will be implemented and how much of a salary hike it could bring.
While the government has already set the process in motion, early indications suggest that the rollout of the 8th Pay Commission may be delayed, potentially leading to significant arrears if implemented retrospectively. 8th Pay Commission Update: Over 50 Lakh Employees, 69 Lakh Pensioners To Benefit From 8th CPC, Says MoS Pankaj Chaudhary; Date of Implementation To Be Decided by Government.
8th Pay Commission: Current Status
The government has notified the 8th Central Pay Commission and finalised its Terms of Reference (ToR). The panel, headed by former Supreme Court judge Justice Ranjana Desai, has begun its work and has been given 18 months to submit its report.
Based on past pay commission timelines, the government typically takes an additional three to six months to examine and approve the recommendations. This places the likely implementation window in late 2027 or early 2028, instead of January 1, 2026, which many employees had initially expected. Although no official implementation date has been announced. 8th Pay Commission Fitment Factor Explained: How It Is Decided, What Influences It and the Possible Fitment Factor Employees and Pensioners Can Expect.
Expected Salary Hike Under 8th Pay Commission
Market analysts, including Ambit Capital, have projected a salary and pension hike of around 30–34% under the 8th Pay Commission. A key driver of this increase is the proposed fitment factor, which determines how basic pay is revised. Estimates suggest the fitment factor could range between 1.83 and 2.46, with several projections centring around 2.28.
Unlike previous pay commissions, the government has clarified that there is no current proposal to merge Dearness Allowance (DA) or Dearness Relief (DR) with basic pay or pension.
About DA Status...
The Centre has reiterated that DA and DR will continue to be revised separately every six months, based on the All India Consumer Price Index for Industrial Workers (AICPI-IW). At present, DA and DR stand at 55%, following a 3% hike announced ahead of Diwali last month.
How Salaries of Govt Employees Be Impacted
For a Level 1 employee with a current basic pay of INR 18,000, the gross monthly salary, including DA and allowances, is approximately INR 35,000. If the 8th Pay Commission results in a 34% overall hike, the revised gross salary could rise to around INR 46,900 per month, an increase of nearly INR 11,900.
What Government Has Said So Far?
Minister of State for Finance Pankaj Chaudhary has clarified that no decision has yet been taken on implementing the 8th Pay Commission from January 1, 2026.
Responding to a question in the Lok Sabha on December 8, 2025, he said the implementation date and funding mechanism would be decided at a later stage. He also confirmed that the commission will determine its own methodology and must submit its report within 18 months of its constitution. The 8th Pay Commission is expected to impact around 50.14 lakh central government employees and nearly 69 lakh pensioners.
(The above story first appeared on LatestLY on Dec 15, 2025 08:36 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).