8th Pay Commission: Central Govt Employees To See Major Salary And Pension Hike From January 2026
8th Pay Commission: Central Govt Employees To See Major Salary And Pension Hike From January 2026
The 8th Pay Commission is expected to deliver a significant increase in the salary and pension of central government employees, with a proposed fitment factor rise from 2.57 to 2.86 beginning January 2026.
Over 1 crore central government employees and pensioners are awaiting an official announcement regarding the formation of the 8th Pay Commission, which will assess the current economic conditions and provide recommendations for salary and pension revisions. Though the central government has not yet made an official announcement, it is anticipated that the new Pay Commission will be introduced in the upcoming Union Budget. Following its establishment, the recommendations will be reviewed by the government, with expected changes in salaries and pensions based on those suggestions.
Reports indicate that the government will likely be urged to implement a 2.86 times salary hike under the new Pay Commission. This adjustment is based on a fitment factor of 2.86, which has been recommended by the National Council of the Joint Consultative Machinery (NC-JCM).
The implementation of the 8th Pay Commission is expected to bring about major changes in salary and welfare measures for government employees and their families. The minimum basic salary, currently set at ₹18,000, could increase to ₹51,480 with the proposed fitment factor of 2.86.
Impact on Pension: The change in the fitment factor will also affect pensions. The minimum pension, which is currently ₹9,000, could rise to ₹25,740 under the new fitment factor of 2.86.
Revision of Dearness Allowance: In addition to the fitment factor, dearness allowance (DA) will be revised to reflect the changes in basic salary, which will further impact the overall compensation and pension benefits for central employees.
The Unified Pension Scheme (UPS), scheduled to be implemented on April 1, 2025, will calculate pensions based on the salary from the final 12 months of service. This is expected to provide a boost to pensioners, enhancing their post-retirement benefits.
