8th Pay Commission Update: Expected Salary And Pension Hike Timeline For Central Govt. Employees

The Union cabinet had approved the formation of the 8th Pay Commission earlier this year to revise the salaries of personnel employed by central government and retirees. While the constitution of the commission has received the government nod, central administration employees still await an official announcement. 

Will 8th Pay Commission Submit Recommendations By 2025?

The 8th Pay Commission is expected to submit its recommendation by the end of this year; however, it is slated to come into effect from January 2026. Meanwhile, the rollout will be basis the completion of its report, the submission to the government, and approval of its recommendations. 

Following the approval, the recommendations of the 8th Pay Commission are expected to be implemented in FY27 and are likely to increase government salaries and pensions by 30-34 per cent, the report said.

The 30-34 per cent hike in salaries and pensions, estimated to cost the government an additional Rs1.8 lakh crore, the report stated. Notably, Salaries, pensions, and allowances are adjusted through pay commissions using the fitment factor. This important multiplier decides the salaries and pensions of government employees, taking into account factors like inflation, employee requirements, and the government's financial capacity.

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Who Are The Beneficiaries Of The 8th Pay Commission?

The recommendations of the 8th Pay Commission will directly benefit approximately 44 lakh central government employees across various ministries and departments, along with 68 lakh pensioners, totalling up to more than a crore direct beneficiary. Notably, the 4.4 million central government employees and armed forces personnel represent 0.7 per cent of India’s 60 crore labour force, and nearly 9 per cent of the formal sector, the report said.

8th Pay Commission: Role Of Pay Commission

The central government constituted a pay commission typically once every 10 years to review and recommend changes to the salary structure of government employees. The government has established seven pay commissions since 1946.