New Delhi, September 05: Central government employees and pensioners are keenly awaiting the 8th Pay Commission, which is expected to bring changes to the salary and pension structure. Similar to the 7th Pay Commission, experts believe the new panel will recommend simplifying the system by merging or abolishing several smaller allowances, while focusing more on increasing the basic pay and Dearness Allowance (DA). Allowances such as travel allowance, special duty allowance, and certain regional benefits may be rationalized to make the pay structure less complicated.

In the 7th Pay Commission, nearly 200 allowances were reviewed, of which 52 were scrapped and many others merged. This trend is likely to continue in the 8th Pay Commission to promote transparency. The key element determining salary increments will be the “fitment factor”—a multiplier applied to the basic pay. Experts estimate this factor to range between 1.83 and 2.86, which could translate into a pay hike of approximately 13% to 34%. 8th Pay Commission: Will It Introduce a New Healthcare Scheme for Central Government Employees and Pensioners or Strengthen the Decades-Old CGHS?

Currently, employees receive a 55% DA, but when the 8th Pay Commission is implemented from January 1, 2026, the DA is expected to be reset to zero and merged into the basic pay. This will moderate the visible hike but still provide long-term benefits since pensions are directly linked to basic pay plus DA. 8th Pay Commission News Today: Salary Hike Must Come Into Effect From January 2026 Despite 8th CPC Implementation Delay, Says JCM Leader.

Although the government formally announced the setting up of the 8th Pay Commission in January 2025, details such as the names of its members and its Terms of Reference (ToR) are still awaited. Based on past timelines, experts predict that while the recommendations may only be implemented by early 2028, the pay revision will be applicable retrospectively from January 2026. Around 49 lakh serving employees and 65 lakh pensioners are expected to benefit significantly from this revision.

(The above story first appeared on LatestLY on Sep 05, 2025 02:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).