The long wait for central government employees and pensioners has seen a key development during the Winter Session of Parliament, with the government confirming that the process for the 8th Pay Commission has formally begun. However, the Centre has made it clear that the final decision on implementation is still pending, even as lakhs of employees and pensioners await clarity on revisions to salaries and pensions.
Commission Rules Approved, Review Underway
The central government approved the rules governing the 8th Pay Commission in November 2025 and has granted the panel 18 months to submit its report. This marks the formal start of the review of salaries, allowances and pensions for central government staff.
Officials have indicated that any changes will only come after the Commission submits its recommendations and the Union Cabinet grants its approval. As a result, there will be no immediate change in salaries or pensions.
Expected Pay and Pension Revisions
Based on government data and trends observed in previous pay commissions, salary increases are estimated to range between 20 per cent and 35 per cent once the 8th Pay Commission is implemented. The actual revision will depend on the fitment factor, which is expected to fall between 2.4 and 3.0.
For example, an employee drawing a basic salary of Rs 18,000 could see their pay revised to around Rs 30,000 to Rs 32,000 after implementation. Pensioners are also expected to benefit from revised pension payouts.
The government has clarified that Dearness Allowance (DA) will continue to remain separate from basic pay, with no proposal to merge the two.
When Will Revised Pay Reach Bank Accounts?
According to reports, the revised pay structure is expected to take effect on paper from January 1, 2026. However, actual disbursement may be delayed.
Past precedent suggests a lag between implementation and payment. The 7th Pay Commission, for instance, came into effect in January 2016, but Cabinet approval was granted in June, with payments reaching employees only after that.
Similarly, the 8th Pay Commission has up to 18 months to submit its report, followed by Cabinet approval and departmental recalculations. As a result, revised salaries and pensions are likely to be credited to employees’ accounts only in the 2026–27 financial year.
