The news of 8th Pay Commission for central employees and pensioners has intensified in February 2026. Although there was no official announcement of this in Budget 2026, experts and employee organizations are still considering it as a historic change.
Here are 8 big possible good news.
1. Big jump in basic salary
According to speculations, the minimum basic pay may increase from the current ₹18,000 to around ₹34,000 to ₹51,000. This means that lakhs of central government employees may already see a big increase in their monthly salaries.
2. Effect of fitment factor
The fitment factor in the new pay structure is expected to range from 1.92 to 3.00. This is expected to increase the total salary by about 25% to 35%.
3. Retroactive effect
Experts say that the recommendations of the Pay Commission will be considered effective from January 1, 2026. This means that employees will be able to take advantage of the increase in their salaries earlier.
4. Gift of arrears
Since the commission’s final report may take around 18 months to prepare, employees will get lump sum arrears from January 2026 till the date of implementation. This will be a big economic benefit for the employees.
5. Reset of Dearness Allowance (DA)
After the implementation of the new commission, the existing Dearness Allowance (DA), which is estimated to be around 60% by January 2026, will be merged into the basic salary. With this DA can be reset again from 0%.
6. Benefits to pensioners
The minimum pension may increase from ₹9,000 to around ₹20,000-₹25,000. This will directly benefit more than 69 lakh pensioners.
7. Improvement in allowances
House Rent Allowance (HRA), Traveling Allowance (TA) and other allowances will also be increased on the basis of the new basic salary. This will further increase the real income of the employees.
8. Gratuity and retirement benefits
The maximum limit of gratuity and other retirement benefits is also expected to increase based on the new basic salary. This will prove beneficial for retired employees and their families.
Experts’ opinion in this regard
According to government sources and media reports, the Pay Commission may submit its recommendations within the next 18 months. If these estimates prove to be true, it will be a major change for the central employees in financial and social terms.