8th Pay Commission: Salary Hike, Basic Pay Changes, and When You'll See The Increase - Check Details

The 8th Central Pay Commission (CPC) was declared on January 16, 2025, with an estimated date of effect of January 1, 2026. The commission has the target to revise around 50 lakh central government staff members' salary, allowances, and pensions and those of about 65 lakh pensioners.

However, indications are that the effective implementation may come as late as early 2027, while arrears are set to be paid from the date of effect specified.

8th Pay Commission: Key Areas of Focus

The commission is going to look into several key areas, including salary allowances, pension and fitment factor.

Revision of Salary Structure: Detailed examination of the existing pay structure for equitable pay.

Allowances Revision: Review of assorted allowances to bring them in line with present economic realities.

Pension Revisions: Pension schemes are to be revised for the benefit of retirees.

Fitment Factor Revision: The fitment factor, used for salary increments, is likely to be 2.6 to 2.86.

8th Pay Commission: Role of NC-JCM

The National Council–Joint Consultative Machinery (NC-JCM), which acts on behalf of central government employees and pensioners, is finalising a detailed memorandum. 

It will contain demands regarding the fitment factor, the minimum wage, pay scales, allowances, promotion policy, and pensionary benefits. A 13-member committee, with Shiv Gopal Mishra at its head, has the responsibility of finalizing this memorandum, and a meeting has been convened for June 2025.

ALSO READ: 8th Pay Commission: Centre To Finalise Terms, Cabinet Approval Likely Soon

8th Pay Commission: Expected Salary Hike

Though the exact numbers are not yet finalised, professionals and media reports expect the salary boost to range between 20% to 35% at different salary levels. For example, assuming a 20% increase, a Level 1 worker's base pay would go from Rs 18,000 to Rs 21,600. These estimates can change depending on the final report of the commission. 
The 8th Pay Commission is set to introduce major changes in the pay structure of central government employees and pensioners. Although the formal implementation might be delayed, the expected changes are meant to meet prevailing economic conditions and provide fair compensation for public servants.