New Delhi, October 24: There’s renewed optimism among over a crore Central Government employees and pensioners as reports indicate that the long-awaited 8th Pay Commission could soon be constituted, potentially leading to a major salary revision and 17 months of arrears if its recommendations are implemented retrospectively from January 1, 2026.

Although the government had announced plans to set up the commission in January 2025, no formal notification has yet been issued, creating uncertainty among employees. The 7th Pay Commission concludes its tenure on December 31, 2025. Historically, a pay commission takes 18 to 24 months to prepare its report, followed by another 3 to 9 months for government review and approval. 8th Pay Commission: Fitment Factor Set to Determine Salaries and Pensions for Central Government Employees and Pensioners, Know How.

For reference, the 7th Pay Commission was formed in February 2014, submitted its report in November 2015, and its recommendations were implemented from January 1, 2016. If a similar schedule is followed, the 8th Pay Commission’s report may be ready by April 2027, with implementation likely backdated to January 2026, paving the way for employees to receive 17 months of arrears. 8th Pay Commission: Brokerage Firms Predict 13% to 54% Hikes, Know How Much Increase Central Government Employees and Pensioners Can Expect.

According to Kotak Institutional Equities, the minimum basic salary could increase from INR 18,000 to INR 30,000, implying a fitment factor of around 1.8x and an effective salary hike of nearly 13%. The fiscal burden is projected at 0.6–0.8% of GDP, translating to INR 2.4–3.2 lakh crore in additional government expenditure.

Central government employees and pensioners are eagerly awaiting official confirmation, hoping for timely implementation amid rising inflation and living costs. If executed as planned, the 8th Pay Commission could bring one of the most substantial pay hikes and arrear payouts in recent years, boosting morale across departments.

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(The above story first appeared on LatestLY on Oct 24, 2025 03:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).