Millions of employees and pensioners under the government of India are eagerly waiting for implementation of the 8th Pay Commission. Although the government announced its formation in January 2025, the Commission’s Terms of Reference (ToR) have not yet been announced, which caused tension about its implementation timeline from January 1, 2026. However, no matter how long it will take to be on effect, one thing is obvious that the 8th Pay Commission will be from January 1, 2026, ensuring that employees receive their arrears. So which benefits employees and pensioners will get as soon as 8th Pay Commission will be on effect? How much salary can be increased? We will try to find all the answers through the article.
Past records show that pay commissions take two to three years from their formation to implementing their recommendations. The 7th Pay Commission was announced in September 2013, and the recommendations came into effect in January 2016. However, it is certain that whenever the recommendations are implemented, they will be implemented from January 1, 2026, so that employees will receive their arrears.
Amid the delay in the commission’s formation, employees are most interested in the minimum basic salary and fitment factor. According to the 7th Pay Commission, the minimum basic salary is Rs 18,000. According to reports, the 8th Pay Commission will:
What can happen?
Minimum basic salary may increase to Rs 44,000 (for Level-1 employees).
The fitment factor is likely to be between 1.92 and 2.86.
Meanwhile, central government employees and pensioners received a major relief just before Dussehra and Diwali. The government approved a 3% increase in dearness allowance (DA) and dearness relief (DR).
What are the benefits?
- Dearness allowance has now increased from 55% to 58%. This increase is effective from July 1, 2025.
- Employees will receive their arrears for July, August and September along with their October salaries, which could be a huge financial help during the festive season.