Central employees are waiting for the 8th Pay Commission, which may come into effect from January 1, 2026. A 20-35% increase in salary is expected. Due to delay in reporting, the increased salary may be available till 2026-27, but the arrears will be paid.
New Delhi: The tenure of the Seventh Pay Commission is ending on 31 December 2025, hence lakhs of central employees and pensioners are hopeful about the Eighth Pay Commission. It is believed that the recommendations of the commission will come into effect from January 1, 2026. But, no official announcement has been made yet regarding the change in salary. The Finance Ministry of the Center has given 18 months time to submit the report to the Eighth Pay Commission. According to this, the report will be completely ready only by the middle of 2027. Due to legal processes and delays in submission of reports, it may take the financial year 2026-27 for the increased salaries to be handed over. Similar delays had occurred during previous commissions also.
How much salary increase is expected?
Looking at the current economic situation, experts believe that the salary may increase by 20 to 35 percent. The fitment factor is likely to be between 2.4 to 3.0. There was an average increase of 40 percent in the Sixth Pay Commission and 23 to 25 percent in the Seventh Commission.
The final decision will be taken keeping in mind factors like inflation, financial condition of the government and tax earnings after the 16th Finance Commission. Economic experts believe that the government can adopt a balanced approach regarding changes in allowances and DA, so that the employees benefit.
Employees will also get arrears from January 1, 2026. But, the increased salary may have to wait for months to reach the bank accounts. After the submission of the Commission’s report, there will be more clarity in this matter as soon as the final approval is received from the Union Cabinet.