This is what most people do not get with this update, it is not all about salary increment. The 8 th Pay Commission that was endorsed in January 2025 is yet to be completely constituted with new terms of reference, and a chairman among other additions. Such a delay has plunged more than 1.12 crores of central government employees and pensioners in limbo.
Panel Formation Still Pending
It would make you think that once the cabinet nods things would speed up. However, the Department of Personnel and Training (DoPT) has thrice extended the deadline of important appointments, the latest change taking the date to July 31, 2025. In the absence of the full panel, no recommendation is possible to be written, and this is holding everything back.
Expected Salary Hike: 30–34%
The Ambit Capital states that the 8th Pay Commission is likely to be an increment in the salaries and pensions by 30-34 percent. It is a huge increase as opposed to a 14% increase by the 7 th Pay Commission. The factor of fitment will fall between 1.83 and 2.46 in reply to inflation and fiscal space.
Implementation Timeline Uncertain
You may be thinking that January 2026 will be the release date, but that is not a chance. According to experts, this may take 18 to 24 months, which would mean it is implemented in the later part of 2026 or maybe FY27. Late payment entails an increase in arrears as well as the challenge in which employees can not plan their finances in advance well.
Pensioners to See Moderate Gains
HRA will not be given to the retired workforce and they will also not be provided with transport allowances; therefore their margin is going to be a little lower. Nevertheless, the new Unified Pension Scheme also ensures they receive 50 percent of last drawn salary as pay at base level as FY26. That would be significant change of the former NPS model and is more stable.
Projected Salary Matrix Comparison
Here’s how the new pay matrix could look if the fitment factor lands around 2.28:
| Pay Level | 7th CPC Basic Pay | 8th CPC Projected Pay |
|---|---|---|
| Level 1 | ₹18,000 | ₹41,000 |
| Level 5 | ₹29,200 | ₹66,576 |
| Level 10 | ₹56,100 | ₹127,908 |
| Level 14 | ₹1,44,200 | ₹328,776 |
| Level 18 | ₹2,50,000 | ₹570,000 |
These figures are estimates based on current discussions and inflation trends. Final numbers will depend on the commission’s recommendations and government approval.
Also Read: Unified Pension Scheme Update: Big Gift for Central Employees, Know Pension Benefits