8th pay commission: A salary and pension hike for central government employees seems certain, as the 8th Pay Commission recommendations are expected to be implemented soon. A major announcement from the government regarding the 8th Central Pay Commission (CPC) could come any day. The shift from the 7th to the 8th Pay Commission will bring a significant increase in salaries and pensions for central government employees. Will there be an announcement before Diwali or Dussehra festival?
In addition to the drastic rise in salary and pension, there will be a general increase in Dearness Allowance (DA) during the Dussehra and Diwali festivals. Experts estimate a 3% increase in DA this time, amid a cooling inflation trend. Currently, DA stands at 55% of basic pay. This will be increased to 58% if the announcement is made. This hike will directly benefit over 1.2 crore employees and pensioners. It will provide financial relief before the festive season.
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Dearness Allowance (DA)
Dearness Allowance (DA) is extra money given to employees and pensioners to manage daily expenses and inflation. It is revised twice a year, in March and September, depending on the Consumer Price Index (CPI). This allowance helps families deal with the rising cost of living. That is why many families eagerly wait for this announcement. The DA hike is usually announced twice a year, in February–March and in September–October, with effect from January and July of that year. It is meant to help employees manage the rising cost of living due to inflation.
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Salary Hike and Pension Hike
According to the National Confederation of Government Employees, the 8th Pay Commission is likely to come into effect from January 1, 2026. If approved, it is likely to bring in several changes:
- The 8th Pay Commission (CPC) will replace the 7th CPC, leading to higher salaries and pensions for central government employees.
- Its implementation is expected mainly in 2026, though delays are possible.
- The key proposal of the 8th CPC is scheduled from January 2026.
- It will affect more than 1 crore employees and pensioners.
- The major proposal is to raise the fitment factor from 2.57 (7th CPC) to 2.86.
If Approved..
- Minimum salary of central government employees could rise from ₹18,000 to ₹51,480.
- Minimum pension could increase from ₹9,000 to ₹25,740.
- Additional hikes will also be seen in allowances such as DA (Dearness Allowance), HRA (House Rent Allowance), and TA (Travel Allowance).
Impact on Government employees
- Around 5 million central government employees and 6.5 million pensioners will benefit from the 8th Pay Commission.
- In total, about 11.5 million people will be directly impacted.
- Salaries and pensions are expected to rise by 30–34%.
- The fitment factor could be revised in the range of 1.83 to 2.86, directly affecting employees’ basic pay.
- The government has approved the 8th Pay Commission, but the formal establishment and notification of its Terms of Reference (ToR) are still pending.
- The minimum basic pay for Level 1 employees may be revised to ₹51,480.
- The minimum pension could increase by about ₹20,500, reaching ₹25,740.