The Union Cabinet in January 2025 approved the 8th Pay Commission (CPC). This move brought relief to over 49 lakh central government employees and nearly 65 lakh pensioners across India. The commission’s primary goal is to revise salaries, allowances, and pensions in line with the current economic situation.
Delay in Notification
As of August 2025, the Terms of Reference (ToR) of the 8th CPC is still pending. The appointment of the chairperson and commission members has been delayed, causing concern among employee unions. The official notification is expected later this year.
Projected Salary Hike
The commission is likely to recommend a fitment factor increase in the range of 1.8 to 2.46. This would translate to a 13–34% salary hike. For example, the basic pay of ₹18,000 could rise to anywhere between ₹32,400 and ₹44,280. However, the Dearness Allowance (DA) will reset to zero once the new pay scales are implemented.
Salary Projection (After Fitment Factor Revision)
| Category | Current Basic (₹) | Fitment Factor 1.8 (₹) | Fitment Factor 2.46 (₹) |
|---|---|---|---|
| Entry-Level Employee | 18,000 | 32,400 | 44,280 |
| Mid-Level Employee | 50,000 | 90,000 | 1,23,000 |
Pension Reforms
Pensioners are also expected to benefit significantly. The minimum pension could increase by 2.28 times the current level. For example, a pension of ₹9,000 may go up to ₹20,520. This adjustment will align pensions with inflation and ensure better financial stability from 2026 onwards.
Pension Projection (After Fitment Factor Revision)
| Category | Current Pension (₹) | Fitment Factor 1.8 (₹) | Fitment Factor 2.46 (₹) |
|---|---|---|---|
| Entry-Level Pensioner | 9,000 | 16,200 | 22,140 |
| Mid-Level Pensioner | 30,000 | 54,000 | 73,800 |
Stakeholder Consultations
The Ministries of Finance, Defence, and State Governments are actively engaged in discussions with the Centre. The focus is on ensuring a balanced approach for salaries, allowances, and pensions without straining fiscal resources.
Implementation Timeline
If things go as planned, the recommendations will be finalized by late 2025. However, just like the 7th CPC, the actual implementation might take place around 2027–2028. Factors such as fiscal conditions and stakeholder feedback could extend this timeline, so employees and pensioners may need to wait patiently.
Preparing for the Future
Despite delays, the 8th CPC promises major improvements in both salary and pension structures. Employees and pensioners are advised to stay updated through official websites like dopt.gov.in and prepare their financial planning considering the DA reset and upcoming revisions.