The year 2025 is coming to an end, and the New Year 2026 is just around the corner. Central government employees and pensioners are eagerly waiting, as the 8th Pay Commission is expected to be implemented from January 1, 2026. This is likely to bring a significant salary hike for employees. Experts are sharing their predictions, but the actual date when the revised salaries will reflect in employees’ bank accounts may take some time, based on the experience of previous pay commissions.
Will the increased salary be credited immediately?
The 8th Pay Commission has already indicated possible salary revisions. However, questions remain about whether the revised salary and pending arrears will be credited immediately once the commission takes effect.
Looking at history, previous pay revisions often took time to reach employees’ accounts. The 7th Pay Commission will formally end on December 31, 2025, paving the way for the 8th Pay Commission. While the new pay structure may be effective on paper from January 1, 2026, experts suggest that the actual disbursement of salary and arrears may take a few months. Employees should not expect the increased salary to appear instantly in their bank accounts.
Experts clarify the timeline
In October 2025, the Union Cabinet, led by PM Narendra Modi, approved the Terms of Reference for the 8th Pay Commission. The commission has been given approximately 18 months from November 2025 to finalize recommendations on pay, allowances, and pensions.
According to Prateek Vaidya, MD of Karma Management Global Consulting Solutions, there is usually a gap between the official effective date of the pay revision and the actual payment. He cited the 7th Pay Commission as an example: the revision was effective from January 2016, but cabinet approval came in June 2016, and arrears were paid in the following months.
Expected salary hike
Although no official figures have been released yet, experts have made preliminary estimates based on previous pay commissions and current economic conditions.
- After the 6th Pay Commission, the average salary increased by about 40%.
- The 7th Pay Commission provided a 23–25% increase, based on a fitment factor of 2.57.
- Initial estimates for the 8th Pay Commission suggest a possible increase of 20–35%, with the fitment factor expected to range between 2.4 and 3.0.
This increase may particularly benefit entry-level and minimum-salary employees. Experts emphasize that these are only estimates. The final salary hike will depend on factors such as budgetary capacity, economic conditions, and political decisions, and may take 12–18 months to fully implement.
Employees and pensioners should prepare for a significant salary increase in 2026 but should be aware that receiving the revised salary and arrears in their bank accounts may take time, as seen in previous pay commission cycles.
