8th Pay Commission APPROVED: Central govt employees to get BIG salary hike by…, check expected timeline, arrears release details

The Union Cabinet, led by Prime Minister Narendra Modi, recently approved the Terms of Reference for the 8th Central Pay Commission (CPC) on October 28. This new Pay Commission will review and recommend changes in salaries, pensions, and allowances for about 50 lakh Central Government employees, including Defence personnel, and nearly 69 lakh pensioners.

Earlier, in January 2025, the Central Government had announced the creation of the 8th CPC to look into ways to improve the pay structure and other benefits for government staff. The government also said that the Commission can submit interim reports on specific issues whenever required, before giving its final recommendations.

According to the Finance Ministry, the 8th Central Pay Commission will be a temporary body and will include a Chairperson, one part-time member, and a Member-Secretary.

Key points the 8th Central Pay Commission will review

The 8th Central Pay Commission will take into account several important factors before making its recommendations:

  •  It will consider India’s overall financial health and the need to maintain fiscal discipline.
  • The Commission will ensure that enough funds remain available for government development projects and welfare programs.
  •  It will review the financial impact of pension schemes that are not funded by employee contributions.
  • Since most state governments follow the Centre’s pay structure with some changes, the Commission will assess how its proposals may affect state finances.
  • It will also look at pay, benefits, and working conditions of employees in public sector undertakings and the private sector to maintain a fair balance.

8th Pay Commission Fitment Factor: Expected Salary Hike

In the previous revision, the 7th Pay Commission had set the fitment factor at 2.57, meaning that employees’ basic pay and pensions were multiplied by 2.57 to determine the new salary. When the revised pay structure took effect, the Dearness Allowance (DA) and Dearness Relief (DR) were reset to zero, but employees still received an overall salary increase of about 23.5 per cent.

For the upcoming 8th Pay Commission, experts believe the fitment factor may rise to around 3. This would result in a larger salary jump for central government employees and pensioners. However, the actual increase will depend on how much of the Commission’s proposal the government decides to approve, as well as the employee’s grade and position.

Current salary structure under the 7th Pay Commission

At present, all Central Government employees and pensioners are paid according to the 7th Pay Commission (7th CPC).

  • Minimum basic salary: Rs. 18,000 per month
  • Minimum basic pension: Rs. 9,000 per month
  • Maximum basic salary: Rs. 2,25,000 per month
  • Cabinet Secretary and similar posts: Rs. 2,50,000 per month
  • Fitment factor: 2.57 times the 6th CPC pay

Currently, the Dearness Allowance (DA) and Dearness Relief (DR) stand at 58 per cent.

A 3% DA increase means:

  • For the minimum basic salary of Rs. 18,000, it adds Rs. 540, making the total Rs. 28,440 (including DA).
  • For the minimum pension of Rs. 9,000, it adds Rs. 270, bringing the total Rs. 14,220 (including DR).

8th Pay Commission: When will salary hike take effect?

The 8th Central Pay Commission began its work later than originally planned. It was officially formed in October 2025 and is expected to submit its final report by mid-2027. After the report is submitted, the central government will take about three to nine months to review and approve it. This means that employees may start getting their revised salaries sometime in 2027.

However, there is some good news for government employees. Once the new pay scales are implemented, arrears will be calculated from January 1, 2026. This ensures that staff members will receive the pending salary difference for the months before implementation, so they won’t lose any benefits due to the delay.

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