There is one aspect about the 8th Pay Commission that most tend to overlook—it is not just a revision of salary but also a reset button for over 1 crore central government employees and pensioners. Approved in 1 2025, this commission is assumed to implement its recommendations before 2027, meaning from 1 2026. That means the report card is about to change, even if the final report is a work in progress.
Salary Hike That Reflects Today’s Economy
You may be wondering exactly how much of a raise is really on the table. Preliminary estimates indicate that the raise could be in the range of 30–34 per cent, which will take the minimum basic salary from Rs 18,000 to at least ₹51,4802. This raise keeps pace with inflation and the increasing cost of living, and will provide our employees with more money in their pockets so they can ease their monthly budget crunch.
Fitment Factor: The Key Multiplier
While it’s not easy to explain this, your new pay is based on something called the fitment factor, which is used to multiply your existing basic pay so that your revised basic pay is worked out. If the 7CPC has adopted a factor of 2.57, the same in 8CPC would be higher between 2.86 and 3.68 being the smallest and highest respectively for higher job levels and premium jobs categories. The larger the factor, the greater the jump in take-home pay.
Pensioners Aren’t Left Behind
Retirees will similarly see an increase. The minimum pension, which is ₹9,000 as on now, could come to ₹25,740 and even more with the final fitment factor. This is particularly relevant for seniors who are trying to budget and balance both health costs and living expenses on a fixed income.
Pricing Impact on Government Budget
This isn’t just a personal success — it’s a huge financial play. The estimated cost to the government is of the order of ₹1.80 lakh crore, which makes it one of the costliest pay revisions in recent times4. But some economists say it could also boost demand and brighten consumer spending in various corners of the economy.
What’s Causing the Delay?
The formal establishment of the commission (appointment to members and finalizing Terms of Reference) is still pending, despite approval of the commission in early 2025. Which is why some experts think a true rollout would extend into FY27, even if the effective date stays at January 2026.
This May Seem Small, But It Matters
If you are a central government employee or pensioner, ensure that your details of service records, Aadhaar and bank information are up to date. These little checks can prevent delays while receiving the pay in revised mode or arrears. And during the wait, there’s something to be said for knowing what’s ahead so that you can be prepared.