The 8th Pay Commission is a much-awaited implementation in the coming months. This upcoming Pay Commission is expected to boost and improve the cost of living of around 1 crore central government employees, including retirees.
However, there is a growing concern over the delay in the process of the 8th CPC.
Delay In 8th Pay Commission:
Retired senior citizens are worried on whether the 8th Pay Commission would be implemented on time, which is expected to be January 1, 2026. The latest to flag the issue is the Railway Senior Citizens Welfare Society (RSCWS).
In a letter to PM Narendra Modi, RSCWS said, “The announcement regarding the 8th Pay Commission in January 2025, brought immense relief and expectations among over 47 lakh central government employees and 65 lakh pensioners across the country.”
“This timely initiative by the central government to revise salary structures, allowances, and pensions in line with current economic realities, inflation, and evolving needs, is highly appreciated,” the letter said.
However, the letter pointed out that “while the approval for the 8th Pay Commission was made in January 2025, the formal constitution of the commission, including the appointment of its Chairman and members, and the finalisation of its Terms of Reference (ToR), appears to be getting delayed.”
“This prolonged silence and lack of concrete progress in formalising the commission are leading to growing uncertainty and apprehension among the central government employees and pensioners,” the letter added.
Recently, the Department of Personnel and Training (DoPT) extended the due date for the third time in case of applications for the role of under-secretary-level posts in the 8th Pay Commission. Earlier, the initial date was by April 2025-end, but the process is still ongoing.
When 8th Pay Commission Will Be Implemented?
As per the latest report of Ambit Institutional Equities, the recommendations of the 8th Pay Commission are likely to be submitted by the end of 2025 and could come into effect from January 2026 onwards.
However, the actual implementation date of the 8th CPC will depend on a host of factors, such as the completion of the report, the submission of the report to the government, and further approval for the recommendations under the report.
Why the 8th Pay Commission is expected To Be Implemented On January 1, 2026?
It is expected that the final details of the 8th Pay Commission will be implemented from January 1, 2026. The government has already informed that they would take into consideration recommendations in 2025.
8CPC is going to be implemented in line with the standard gap between the previous pay commissions. Before 8CPC, government employees followed the Pay Matrix of the 7th Pay Commission, which was implemented on January 1, 2016. Hence, 8CPC should be effective from January 2026. The standard gap between two pay commissions is usually 10 years.
When 8th Pay Commission Recommendations Be Implemented?
As per the report, after necessary approvals, the recommendation could come into effect in FY27. The recommendations are expected to increase salaries and pensions of central government employees and pensioners by 30-34%.
8th Pay Commission Salary Hike, Pensions Hike:
The report estimates that a 30-34% hike in salaries and pensions could result in an additional cost of Rs 1.8 lakh crore for the government.
The main key component considered for increasing salaries and pensions is the fitment factor. There are a host of expectations that have been reported over the past five months. The fitment factor could range from 1.92 to 2.86 under the 8th CPC. The majority are hopeful for a 2.86 fitment factor, however, reports of a likely 2.08 and 2.56 fitment factors is also discussed. The new forecast of 3.68 fitment factor, as per media reports.
Benefits Under 7th Pay Commission:
At present, the fitment factor is at 2.57 in 7CPC. The minimum salary is Rs 18,000, which can go as high as Rs 2,50,000 depending upon the position, job roles and category such as Level 1, Level, 2 and Level 3 so on.
Meanwhile, the minimum pension is about Rs 9,000 per month. However, the maximum limit for pensioners is 50% of the highest pay, which is approximately Rs 1,25,000 per month.
7CPC employees also get dearness allowance benefits, which is usually adjusted twice every year. Currently, DA is at 55%. Additionally, the house rent allowance (HRA) is also given under 7CPC, depending upon the city type. X city (metro) has 24% HRA of basic pay, while Y city (Tier-2) has 16%, and Z city (rural) has 8%.
Other benefits like transport allowance, children’s education, leave travel concession, NPS contribution, and healthcare through CGHS are added bonuses in 7CPC.