Millions of central employees and pensioners across the country are eagerly awaiting further news regarding the 8th Pay Commission. The central government approved the commission in January 2025, but the names of its members and the terms of reference (ToR) have not yet been officially announced. This commission will review the salaries and allowances of over 5 million central employees and 6.5 million pensioners.
Experts predict that, after the implementation of the commission’s recommendations, employees’ basic salaries could see a significant increase, leading to a major shift in the pay structure. Let’s explore the full details of this upcoming pay commission and the potential changes.
Historic increase in salaries and allowances expected
The 8th Pay Commission will directly impact the financial situation of central employees and pensioners. This pay commission will review the salaries and allowances of approximately 5 million central employees and 6.5 million pensioners, directly benefiting millions of families.
According to media reports, the government is considering implementing a 1.8x fitment factor. If this happens, employees’ basic salaries could see a significant increase of up to 80%. However, a final decision will be taken based on the Commission’s recommendations.
Ministries continue to deliberate on the Commission’s formation
Discussions have intensified within the government regarding the formation of the 8th Pay Commission. The Finance Ministry has clarified that intensive discussions are underway on the subject among key ministries such as Defence, Home Affairs, and the Department of Personnel (DoPT). The Commission’s members and ToR are expected to be announced soon. Once the Commission is formed, it may take two to three years for it to prepare its report and be implemented by the government.
Previous Pay Revisions and Employees’ Expectations
Pay Commissions in India have typically been formed at approximately 10-year intervals. The Sixth Pay Commission also came after a gap of approximately 10 years. The previous 7th Pay Commission was constituted in February 2014, and its recommendations were implemented in January 2016. Employees and pensioners hope the government may implement the new pay structure from January 2026.
The 8th Pay Commission will set the basis for government employees’ salaries and allowances for the next several years, ensuring their financial stability. This commission will also make recommendations for improving salaries, pensions, and allowances, as well as working conditions.