New Delhi, December 29, 2025: Expectations are running high among central government employees and pensioners over the rollout of the 8th Pay Commission, which is expected to be implemented from January 1, 2026.
Approved by the Prime Minister Narendra Modi-led government, the new pay commission is set to revise salaries, pensions and allowances for a large section of the government workforce, with the proposed fitment factor emerging as the most crucial element in determining the scale of the hike.
As per media reports and preliminary assessments, if the fitment factor is fixed at the upper end of the expected range, the minimum basic salary could rise sharply from the current ₹18,000 to around ₹51,480. Although the government has not officially confirmed the final hike or fitment factor, nearly 50 lakh central government employees, including defence personnel, along with about 65 lakh pensioners, are expected to benefit from the revised pay structure. Traditionally, a Pay Commission is constituted every ten years to address wage revision and compensate for inflation and cost-of-living changes.
Meanwhile, the government has stepped in to counter misinformation related to Dearness Allowance. On December 13, 2025, authorities clarified that claims suggesting pensioners would lose DA benefits under the Finance Act 2025 were incorrect. Officials confirmed that Dearness Allowance and other retirement benefits will continue for pensioners, except in rare cases involving dismissal due to serious misconduct under the CCS Pension Rules.Financial experts believe the final fitment factor will be decided after assessing key indicators such as inflation trends, wage erosion and the government’s fiscal position.
Current estimates suggest the factor could range between 1.83 and 2.57. Tax and finance professionals have pointed out that while the 7th Pay Commission used a fitment factor of 2.57, the actual increase under the 8th Pay Commission will depend on the recommendations submitted in the final report.
With January 2026 approaching, employees and pensioners alike are closely watching official announcements, hopeful that the new pay commission will bring significant financial relief amid rising living costs.
