Last Updated:
The 8th Central Pay Commission has been given 18 months to submit its report to the government.
8th Pay Commission.
8th Pay Commission: Government employees and pensioners awaiting salary and pension revision under the 8th Pay Commission are still without a confirmed implementation date, even as the process has formally begun. The Centre cleared the Terms of Reference (ToR) for the commission in November 2025 and has appointed a chairperson and members, with the panel currently working on its recommendations.
The commission has been given 18 months to submit its report to the government. However, the timeline for rollout and payment of arrears has not yet been announced.
Why Expectations Rose
Speculation about a possible salary hike intensified at the start of 2026, as many employees expected the revised pay structure to kick in from January. Officials, however, have clarified that final decisions on pay revision and fitment factor will be determined only after the commission submits its recommendations.
What Happened Under The 7th Pay Commission
The 7th Central Pay Commission recommended a fitment factor of 2.57, which raised the minimum salary of central government employees from Rs 7,000 to Rs 18,000. This translated into a 157% jump in minimum pay, although the actual real increase was about 14%.
The 7th CPC fitment factor had two components:
Inflation adjustment component: 2.25
Real pay hike component: 0.32
The previous commission assumed dearness allowance (DA) at 125% as of January 1, 2016. This DA was merged into basic pay to reflect the actual cost-of-living levels before applying the real increase.
How The Calculation Worked
Old basic pay was treated as 1.00, while DA of 125% was valued at 1.25. After merging, the revised base became 2.25. On this inflation-adjusted base, the commission added a real hike of about 14.22%, resulting in the final fitment factor of 2.57.
What This Means For 8th Pay Commission
If the same formula is followed, the inflation component for the 8th CPC will depend on DA levels at the time of implementation. Estimates suggest DA could reach about 60% of basic pay by January 2026.
If merged using the same method:
1.00 + 0.60 = 1.60
This would form the inflation-adjusted base before any real pay increase is added. The final fitment factor — and actual salary hike — will depend on how much real increase the commission recommends over this base.
Key Takeaway
While the groundwork for the 8th Pay Commission is underway, the timeline for implementation, arrears payout and final salary increase remains uncertain. The eventual hike will depend entirely on the commission’s recommendations, not current projections.
Click here to add News18 as your preferred news source on Google.
February 23, 2026, 17:29 IST
Read More