Eighth Pay Commission Updates: The Central Government has finally formally constituted the 8th Pay Commission. This commission will review the salaries, pensions and allowances of central government employees and pensioners and recommend amendments. The Commission’s recommendations are expected to impact more than one crore employees and pensioners.
What is the work of the Eighth Pay Commission?
The government has also notified its Terms of Reference (ToR) with the Commission. Commission under this –
Will review the existing salary structure, service conditions and retirement benefits.
Will give new recommendations keeping in mind the country’s financial condition, inflation rate and economic development.
During wage revision, the government will pay attention to maintaining balance between the financial burden and the income of the employees.
Pay Commission is constituted every ten years so that the salaries of government employees can be fixed in accordance with inflation and other economic factors.
When will the Eighth Pay Commission be implemented?
The Seventh Pay Commission was implemented from January 1, 2016. In this sequence, the Eighth Pay Commission is expected to be effective from January 1, 2026. If there is a delay in the Commission’s report or implementation, employees may receive increased wages along with arrears. The government has given the commission 18 months time to submit its report after consultation with various ministries, departments and employee organizations.
How much will salary and pension increase?
The most important factor will be Fitment Factor – i.e. the ratio between the old and new pay structure. In the Seventh Pay Commission, the fitment factor was kept at 2.57. According to experts, it can remain between 2.8 to 3.0 in the Eighth Pay Commission. This means that a significant increase in the basic pay of employees is possible. However, the actual increase in salary and pension will also depend on what amendments are made in Dearness Allowance (DA), House Rent Allowance (HRA), and other allowances.
The aim of the Eighth Pay Commission is that the increase in the salaries of government employees should be fiscally sustainable, so that it neither puts excessive pressure on the government budget nor affects the real income of the employees. Overall, this decision is being considered as a big relief and encouraging news for the central government employees and pensioners, due to which they may see a significant increase in their income from 2026.
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