New Delhi, July 22, 2025: In a major announcement, the 8th Pay Commission will come into effect across India from January 1, 2026. Minister of State for Finance Pankaj Chaudhary confirmed this in a written reply to the Lok Sabha, marking a significant step toward enhancing the earnings of central government employees and pensioners.
The new pay commission will revise salaries, pensions, and allowances for an estimated 50 lakh central government employees and around 65–68 lakh pensioners. The Finance Ministry has already initiated the process of collecting suggestions from ministries, departments, and state governments to assist in framing the recommendations. This structural revision aims to align pay with inflation and current economic trends to improve the standard of living for government personnel.
The Union Government had earlier approved the formation of the 8th Pay Commission on January 16, 2025. Union Minister Ashwini Vaishnaw had stated that the commission’s recommendations would become applicable from January 1, 2026 the day after the 7th Pay Commission ends its term on December 31, 2025.
One of the most crucial factors in determining salary revision will be the fitment factor suggested by the new commission. This multiplier plays a decisive role in calculating the basic pay. A higher fitment factor will directly translate to a more substantial hike in employee compensation under the upcoming pay structure.
8th Pay Commission to Be Implemented from January 1, 2026; Salary Hike for Central Employees
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