New Delhi, January 8: The rollout of the 8th Pay Commission process officially began in January 2026, raising strong expectations of a substantial salary and pension increase for more than 1.1 crore central government employees and pensioners. Although the final recommendations may take up to 18 months to be implemented, the revised pay scales are expected to be effective retrospectively from January 1, 2026, ensuring arrears for beneficiaries.

Expected Salary and Pension Revision Under 8th Pay Commission

According to projections, the minimum basic salary for central government employees may increase from INR 18,000 to around INR 26,000, marking a significant jump in take-home pay. Pensioners are also likely to benefit, with the minimum pension expected to rise to nearly INR 20,500. 8th Pay Commission: Will Central Government Employees Have to Wait Until 2027 for Salary Hike?

In addition to basic pay, the commission is reviewing key allowances such as House Rent Allowance (HRA), travel benefits, and medical allowances. Employee unions have demanded a higher fitment factor, with proposals ranging between 2.28 and 3.0, which could further boost overall compensation. 8th Pay Commission Salary Hike: Will Junior Employees or Senior Officers Gain More From January 2026?

Dearness Allowance (DA) Set to Cross 60 Percent

The 8th Pay Commission comes at a time of sustained inflation. Data from the Consumer Price Index for Industrial Workers (AICPI-IW) shows a 0.5-point rise in November, continuing a five-month upward trend.

As a result, Dearness Allowance (DA) has climbed to 59.93 percent, and estimates suggest that the January 2026 DA hike could take it beyond 60 percent, compared to 58 percent last year. This increase is expected to provide critical relief against rising living costs, subject to final government approval.

Timeline, Implementation, and Arrears

The 8th Pay Commission was approved by the Government of India in November 2025 and is chaired by Justice Ranjana Prakash Desai. While the panel is likely to submit its final report within 18 months, the government has confirmed that revised pay and pension structures will be effective from January 2026.

This retrospective implementation ensures that employees and pensioners will receive arrears, even if there are administrative delays in the final rollout.

Background: End of 7th Pay Commission

The 7th Pay Commission officially concluded on December 31, 2025. Traditionally, pay commissions are constituted every decade to revise salaries, pensions, and benefits, helping public sector employees maintain purchasing power amid inflation and broader economic changes.

With higher basic pay, improved pensions, a likely DA hike above 60 percent, and assured arrears, the 8th Pay Commission 2026 is shaping up to be a major financial relief for central government employees and pensioners across India.

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(The above story first appeared on LatestLY on Jan 08, 2026 12:25 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).