8th Pay Commission: 2025 is just around the corner, and soon we’ll be welcoming 2026. With the new year comes a wave of changes that will affect us all. For government employees, things are going to be a bit different. That’s because the 7th Pay Commission wraps up in December 2025. So, what will happen to the DA increase starting in the new year? Well, the 8th Pay Commission is still in the works.
The 8th Pay Commission is expected to take about two to three years to roll out. Once it’s in place, government employees can look forward to a salary boost. But there’s still a big question: will those who retire in 2025 or in the near future benefit from the 8th Pay Commission? Let’s dig into that.
If you’re planning to retire in 2025, how will the 8th Pay Commission benefits come your way?
Back in November 2025, the Ministry of Finance gave the 8th Pay Commission 18 months to get its report ready. This suggests that the recommendations should be available by mid-2027. Good news for government employees who retire in 2025: they will also enjoy the perks of the 8th Pay Commission. However, these perks will come as an increase in pension. Under the 8th Pay Commission, both the salaries of central government workers and the pensions of retirees will see a rise. So, if you retire this year, expect your pension to go up once the 8th Pay Commission is implemented.
And there’s more! Even if the 8th Pay Commission doesn’t kick in until 2028, you’ll still get arrears for the time between 2026 and when it actually starts. This means if you retire in 2025 and the 8th Pay Commission launches in 2028, you’ll receive three years’ worth of arrears in your account.
Based on trends from previous pay commissions, arrears typically begin the day after the previous commission ends, even if the actual salary payment is later. Therefore, you’ll receive arrears in proportion to your pension increase. The government will transfer the arrears directly to your account.
Will the 8th Pay Commission increase the salaries of private employees?
The Pay Commission is for central government employees. It has nothing to do with private employees. This means it will not increase the salaries of private employees. The salaries of private employees are determined by the organization where they work.