The Central Government gave the green signal to form the 8th Pay Commission on 16 January 2025. However, its Terms of Reference (ToR) and the full process of meetings have not been completed yet. According to reports, the 8th Pay Commission is expected to start from January 2026. But the actual implementation may happen in FY 2027, which is why employees are waiting longer for the pay increase.
What Is the New Update?
According to multiple sources, the panel for the 8th Pay Commission may be formed in late October or early November. After the panel is formed, details about the fitment factor will become clear. The calculation of DA merge, the new pay matrix, and pensions will also move forward. However, no official information has been released yet.
Recently, Shiv Gopal Mishra, Secretary (Staff Side) of the National Council Joint Consultative Machinery (NC-JCM), said that the 8th Pay Commission should be implemented from January 2026. He mentioned that the 7th Pay Commission was implemented in July 2016, while its recommendations were effective from January 2016. The same pattern is expected this time so that employees get relief on time.
How Much Can the Salary Increase?
If the fitment factor rises to around 2.8, employees may get a salary hike of 30%–34%, leading to a big improvement in salary and allowances. On the other hand, some analysts say that if the fitment factor stays at 1.8, the salary increase may be only 13%, which could be less than employees expect.