New Delhi, January 10: Hopes are running high among nearly 1.15 crore central government employees and pensioners as discussions around the 8th Pay Commission progress. The 7th Pay Commission’s term is set to end on December 31, 2025, and the government has already taken formal steps toward implementing the next pay revision for central staff.

If previous pay panels are any indication, the 8th Pay Commission could bring a noticeable increase in salaries, pensions, and allowances, offering relief at a time when household expenses remain high.

When Will the 8th Pay Commission Be Implemented?

The 8th Pay Commission is expected to take effect from January 1, 2026. While the process of setting up the commission and finalising its recommendations may take several months, the revised pay scales are usually implemented with retrospective effect. 8th Pay Commission: How Much Could DA Rise for Central Government Employees If December CPI-IW Matches November Levels?

This means employees and pensioners can expect arrears from January 2026 once the government issues the final notification.

Expected Salary Hike and Fitment Factor

One of the most discussed aspects of the 8th Pay Commission is the fitment factor, which plays a key role in deciding the new basic pay. The 7th Pay Commission used a fitment factor of 2.57, but employee unions are demanding a higher multiplier this time. 8th Pay Commission Update: When Will Central Government Employees Get Salary and Pension Hike?

• Likely fitment factor range: 1.83 to 3.00

• Entry-level basic pay: INR 18,000 could rise to between INR 32,000 and INR 51,000

• Overall salary hike: Estimated at 20 percent to 35 percent

The final decision will determine how much the take-home salary increases across different pay levels.

Dearness Allowance Reset Under New Pay Structure

By January 2026, Dearness Allowance (DA) is expected to rise further by around 3 percent to 5 percent, based on inflation trends. Under the 8th Pay Commission, the existing DA, which stood at around 58 percent by the end of 2025, is typically merged with the basic pay and reset to zero.

The government has already clarified that DA hikes will continue twice a year even after the new pay scales are implemented, dismissing speculation about DA being frozen permanently.

What Pensioners Can Expect

Around 67 lakh central government pensioners are also likely to benefit from the 8th Pay Commission. Revisions in basic pension and Dearness Relief (DR) could result in a 20 percent to 30 percent increase in monthly pension payouts, along with arrears from the effective date.

Allowances Likely to Go Up

Other benefits such as House Rent Allowance (HRA) and Travel Allowance (TA) will be recalculated based on the revised basic pay. This is expected to further improve monthly earnings for employees across departments, from junior staff to senior IAS officers.

While an official announcement is still awaited, expectations around the 8th Pay Commission salary hike continue to grow. If implemented as projected, the new pay structure could significantly improve incomes and help government employees and pensioners better manage rising living costs in 2026.

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(The above story first appeared on LatestLY on Jan 10, 2026 09:59 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).