New Delhi, December 24: Speculation is mounting among millions of central government employees and pensioners regarding the potential formation of the 8th Pay Commission, which would recommend revisions to their salaries, pensions, and allowances. While the 8th Pay Commission was constituted on November 3, its recommendations regarding basic pay, salary hike, fitment factor and more, and their implementation date are yet to be revealed. Here's what we know so far about the 8th Pay Commission.

The 8th Pay Commission was constituted on November 3, 2025, with Justice Ranjan Prabha Desai as Chairperson, Professor Pulak Ghosh as Part-Time Member and Pankaj Jain as Member-Secretary. The 8th Pay Commission is expected to submit its recommendations within 18 months. The revised salary and pension, as per the recommendations of the 8th CPC following the approval, are likely to be applicable from January 1, 2026. Central government employees and pensioners might receive arrears once the 8th CPC recommendations are approved. 8th Pay Commission News: Massive Salary Hike for Central Government Employees if 8th CPC Adopts 2.15 Fitment Factor.

8th Pay Commission: Salaries, Pensions, and DA

The 8th Pay Commission's recommendations would primarily focus on three critical areas:

  • Salaries: The commission would propose a revised basic pay structure, potentially adjusting the "fitment factor" that determines the multiplication of existing basic pay to arrive at the new basic pay.

  • Pensions: Recommendations would also extend to retired central government employees, ensuring their pensions are revised to reflect current economic conditions and maintain their purchasing power.

  • Dearness Allowance (DA): The commission would likely review the method and frequency of Dearness Allowance (DA) and Dearness Relief (DR) revisions. DA is a cost-of-living adjustment paid to government employees and pensioners to offset the impact of inflation. Currently, DA is revised twice a year based on the Consumer Price Index for Industrial Workers (CPI-IW).

8th Pay Commission: Fitment Factor

As the implementation of the 8th Pay Commission is expected from January 1, 2026, there is significant speculation regarding a 2.15 fitment factor. If adopted, this multiplier would effectively more than double the current basic pay of central government employees; for instance, a minimum basic salary of INR 18,000 would rise to INR 38,700.

While some employee unions are advocating for higher multipliers - ranging from 2.86 to 3.68 - to better counteract inflation and rising living costs, the 2.15 figure is frequently cited as a balanced estimate that would still lead to a substantial across-the-board hike in basic salary, pensions, and associated allowances like HRA and TA.

However, because the official commission report is not due for approximately 18 months from its November 2025 constitution, the final fitment factor remains subject to government approval and fiscal considerations. New Rules From January 1, 2026: 8th Pay Commission, FD Rates and LPG Price Changes – Everything Impacting Your Pocket.

What Is a Pay Commission?

A Central Pay Commission is an administrative body constituted by the Government of India to review and recommend changes to the salary structure, allowances, and pension benefits for all central government employees and military personnel. These commissions are typically formed every ten years to ensure that government remuneration remains competitive and reflective of economic realities.

The recommendations of a Pay Commission, once approved by the Union Cabinet, are implemented nationwide, affecting various grades of civil servants, public sector employees, and retired personnel. The 7th Pay Commission, chaired by Justice Ashok Kumar Mathur, submitted its report in 2015, leading to its implementation in 2016.

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(The above story first appeared on LatestLY on Dec 24, 2025 11:26 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).