When will the salary increase?
8th Pay Commission: The year 2025 is now standing at the threshold of its departure. Amidst the preparations for the New Year celebrations, only one question is resonating in the minds of crores of central employees and pensioners of the country, when will they get the gift of the 8th Pay Commission? Will the salary increase in the new year starting after 21 days?
When will the salary increase?
Often pay commission A common perception has been that no matter when the recommendations come, they are implemented with retrospective effect. The employees had great hope that even if the process takes time, the benefit of increased salary will be considered effective from January 1, 2026 and they will be paid the arrears. This date was no less than a ‘deadline’ for the employees.
However, the statement given by the Minister of State for Finance in the Parliament has dashed this hope a bit. The government has clearly stated that at present no final decision has been taken on the “date of implementation” of the Eighth Pay Commission. This simply means that the date of January 1, 2026 has not yet been officially approved by the government.
The matter may drag on till 2027
To increase the salary, first of all it is necessary to get the report of the commission. It is important to understand this process. The Finance Ministry had issued ‘Terms of Reference’ (ToR) for the Commission on 3 November 2025 itself. This decides the direction of the commission’s work. If we look at government rules and previous procedures, the Commission takes approximately 18 months from the date of notification to prepare and submit its detailed report.
If we do the math of this time limit, then the final report of the commission is likely to come by the middle of the year 2027. That is, those employees who were thinking that their pockets will become heavy at the beginning of the new year, may have to wait a little longer with patience. Only after the report comes, the government approves it in the cabinet and only then the increased salary reaches the accounts.
How much will the salary increase?
The entire responsibility of increase in salary depends on the ‘fitment factor’. You will remember that during the 7th Pay Commission this factor was kept at 2.57. Now in the 8th Pay Commission, experts believe that it can be increased to 2.86 or even more.
If the government accepts this recommendation, its impact will be quite widespread. According to estimates, there may be a huge jump of about 30% to 34% in the old basic salary and pension. Not only this, Dearness Allowance (DA/DR) will also be adjusted according to the new basic pay, which will provide huge relief in in-hand salary. In the era of rising inflation, this increase will be no less than a lifesaver.
Also read- 8th Pay Commission: Will salary increase from next month? Government has cleared