Good News! 8th Pay Commission Approved for Central Government Employees, Salary will increase

In a significant announcement, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the establishment of the 8th Central Pay Commission on Thursday. This move will review and recommend salary adjustments for over one crore central government employees and pensioners. The commission is set to come into effect on January 1, 2026.
Key Details of the 8th Pay Commission
Union Minister Ashwini Vaishnaw confirmed the approval during a Cabinet briefing, stating, “The Prime Minister has approved the 8th Central Pay Commission for all employees of the Central Government.” He added that the chairman and two members for the commission will be appointed shortly.
According to government sources:
- Around 50 lakh central government employees, including defence personnel, will benefit from the pay adjustments.
- Approximately 65 lakh pensioners, including retired defence personnel, will also see increases in their pensions.
- In Delhi alone, about 4 lakh employees, including those in defence and Delhi government services, will benefit.
The new pay commission is expected to boost consumption, spur economic growth, and improve the quality of life for government employees and pensioners.
Potential Salary and Pension Hikes
Reports suggest the possibility of a 186% increase in the minimum salary for central government employees, though exact figures will be known only after the commission submits its report in 2026. Currently, employees receive a minimum basic salary of ₹18,000 per month, introduced under the 7th Pay Commission in 2016, which was an increase from ₹7,000 under the 6th Pay Commission.
If a proposed fitment factor of 2.86 is approved, the minimum salary could rise to ₹51,480, up from ₹18,000. Similarly, pensions may increase to ₹25,740, up from ₹9,000. The fitment factor determines how much salaries and pensions rise and is currently set at 2.57 under the 7th Pay Commission.
Historical Context and Impact
Since India’s independence, seven pay commissions have been formed, with each evaluating and recommending changes to the pay scales, benefits, and allowances of central government employees. These commissions are typically constituted every decade to account for economic changes like inflation, ensuring fair compensation.
The 7th Pay Commission, which came into effect in 2016, resulted in an expenditure increase of ₹1 lakh crore for FY 2016-17. The upcoming pay adjustments are expected to have a similarly significant financial impact.
Announcement Timing
The approval of the 8th Pay Commission comes just days ahead of the Union Budget 2025-26, scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1, 2025. This timing underscores the government’s commitment to addressing employee welfare while gearing up for the upcoming fiscal year.
What’s Next?
The 8th Pay Commission will begin its work soon, with the appointed chairman and members tasked with evaluating current pay structures and making recommendations. The report is expected to be submitted before January 2026, laying the groundwork for improved salaries and pensions for millions of government employees and retirees.