The Union Cabinet has formally started the process of revising the salaries and pensions of approximately 1.2 crore central government staff and pensioners by sanctioning the terms of reference (ToR) for the 8th Central Pay Commission (CPC). The commission will suggest salary and pension revisions, paving the way for the next pay hike round.
8th Pay Commission Formation
As per the Cabinet briefing, the Eighth Pay Commission will be led by former Supreme Court judge Ranjana Prakash Desai. It will also have Professor Pulak Ghosh of IIM Bangalore as a part-time member and Petroleum Secretary Pankaj Jain as the member secretary.
18-Month Deadline to Submit 8th Pay Commission Report
The commission has 18 months within which to make its final proposals from the date of its establishment. This implies the new pay structure will be made effective retrospectively. According to the official PIB statement, “The Commission will make its recommendations within 18 months from the date of its constitution. It may, if needed, send interim reports on any of the issues as and when the recommendations are ready.”
What is expected Date to implement 8th Pay Commission?
Following the tradition, recommendations of every Pay Commission are typically given effect once in every decade. Hence, recommendations of the 8th CPC are likely to take effect from January 1, 2026. For comparison purposes, the 7th Pay Commission was constituted in February 2014, and its recommendations gained effect from January 1, 2016.
Salary Hike Timeline in 8th Pay Commission
Although January 1, 2026 is the projected date for implementation, this doesn’t imply that revised wages will automatically be credited into employees’ bank accounts from day one. The panel’s 18-month timeline implies that the report may only be delivered by April 2027. Following the report submission, there are still administrative processes to determine when actual salary credits start. Yet, arrears will be computed starting from January 1, 2026 to give employees backdated benefits.
Expected Salary Increase and Fitment Factor for 8th Pay Commission
The government has not come out with the official salary slabs or fitment factor for the 8th Pay Commission yet. But on the basis of preliminary estimates, salaries could go up to as much as ₹19,000 a month if the fitment factor is at 2.86. For comparison, the 7th Pay Commission had introduced a 2.57 fitment factor, which gave a 157% rise in salary and pushed the minimum basic pay from ₹7,000 to ₹18,000.
In short, the 8th Central Pay Commission is set to revise pay and pensions convincingly from 2026, delivering a decent boost based on inflation, economic conditions, and standards of living, giving a big financial fillip to millions of government servants all over India.
Also Read: 8th Pay Commission: All You Need To Know | Latest Updates
