The 8th Pay Commission, set to be implemented in 2026, is projected to boost salaries of Central government employees by 25-30%, with pensions adjusted accordingly, industry experts revealed on Friday.
Since the previous pay hike began on January 1, 2016, the upcoming revision should commence on January 1, 2026, as salary adjustments for Central government staff occur every decade. The 8th Pay Commission aims to address economic changes and keep government salaries and pensions competitive.
Approximately 50 lakh Central government employees, including defense personnel, and over 65 lakh pensioners are expected to benefit from this move, officials stated. Historically, the 7th Pay Commission introduced a fitment factor of 2.57, resulting in an average salary increase of 23.55% and aligning pensions with the ‘One Rank, One Pension’ scheme.
Neeti Sharma, CEO of TeamLease Digital, speculates that the 8th Pay Commission’s fitment factor will range between 2.6 and 2.85, potentially raising salaries by 25-30% and pensions proportionately. The minimum basic salary is anticipated to exceed Rs 40,000, along with additional perks, allowances, and performance pay.
Sharma emphasized the importance of these revisions in combating inflation, rising living costs, and the disparity between public and private sector wages. Enhanced pay scales will boost disposable incomes, fuel consumption, and positively impact the economy. The government’s periodic pay revisions reflect its commitment to a fair and equitable system that values its workforce and ensures financial empowerment.
The Cabinet approved the 8th Pay Commission on Thursday, which will address the issue of increasing Central government employee salaries and pension payments. Since 1947, seven pay commissions have been established, with the 7th Pay Commission effective from 2016 until its conclusion in 2026.
By forming the 8th Pay Commission in 2025, the government ensures ample time to receive recommendations before the 7th Pay Commission’s period ends. The process will involve extensive consultations with state governments, the Central government, PSUs, and various stakeholders. A chairman and two members will soon be appointed for the commission.
