8th Pay Commission Approved: Big Salary & Pension Hike Expected from January 2026

Kuldeep Singh Chundawat

In a major development for Central Government employees and pensioners, the Indian government has approved the 8th Pay Commission earlier this year to revise the salary and pension structures. If all goes according to plan, the revised pay is expected to come into effect from January 1, 2026 — bringing long-awaited financial relief to millions.

Over 1 Crore Employees and Pensioners Eagerly Await Details

Though the official terms of the commission and the names of its members have yet to be announced, anticipation is high among more than 1 crore employees and pensioners. Many are eager for clarity on the changes that will directly impact their income and financial planning.

📅 8 months ago

Fitment Factor to Play a Key Role in Salary Hike

One of the most crucial aspects of the new pay structure will be the fitment factor, which determines the multiple used to calculate revised basic pay and allowances. In the 7th Pay Commission, the fitment factor was set at 2.57.

Early media reports suggest that the 8th Pay Commission may recommend a fitment factor between 2.5 and 2.86. However, various employee organizations are pushing for an even higher multiplier of 3.68 — a move that could significantly boost salaries across the board.

📅 8 months ago

Major Revisions Likely in Allowances and Pensions

Traditionally, each Pay Commission also reviews and adjusts key allowances. With the current Dearness Allowance (DA) already exceeding 50%, it is expected that a large portion of it will be merged into the basic pay as part of the new structure. This would reset DA calculations, starting afresh from zero — benefiting employees in the long run.

In addition to DA, other major allowances such as House Rent Allowance (HRA), Transport Allowance, and related benefits are also likely to be revised. Pensioners stand to gain as well, with increased monthly pensions that will better help them manage the rising cost of living and inflation.

8th Pay Commission Approved: Big Salary & Pension Hike Expected from January 2026

📅 8 months ago

Timeline: Report Likely by Late 2025

The scope of the 8th Pay Commission will impact nearly 50 lakh serving Central Government employees and approximately 65 lakh pensioners. Though the recommendations of the Commission are primarily for the Centre, several State Governments may choose to adopt them later.

Based on previous timelines, it typically takes between 18 to 20 months for a Pay Commission panel to prepare and submit its report. This suggests that the report could be ready by late 2025 or early 2026 — providing a clearer picture of the revised pay and pension structure.

📅 8 months ago

Until then, Central Government employees and pensioners will closely monitor the developments, hopeful for a more financially secure future.

Author Profile

Kuldeep Singh Chundawat: My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.