The 8th Pay Commission was officially approved on January 16, 2025. It aims to revise the pay structure of around 49 lakh government employees and 65 lakh pensioners. However, as of September 2025, the Terms of Reference (ToR) and committee appointments have not yet been finalized, leaving employees and pensioners waiting for clarity.
Expected Salary Hike
Experts project a fitment factor between 2.28 and 2.86. If implemented, the minimum salary may increase from the current ₹18,000 to around ₹41,000 – ₹51,480. This means a 20–35% salary hike, helping align wages with inflation and economic needs.
Pension Benefits
The minimum pension, currently ₹9,000, is expected to rise significantly under the 8th CPC. Projections suggest it could reach ₹20,500 – ₹25,740.
- Dearness Allowance (DA) will be reset to zero and merged with the basic pay.
- Future increments will depend on CPI-IW (Consumer Price Index for Industrial Workers).
Implementation Timeline
Initially, the new pay structure was planned to take effect from January 1, 2026. But due to delays in forming the commission, implementation could be pushed to late 2026 or even early 2027. Employees and pensioners will, however, receive arrears for the delay period.
Union Demands
The National Council (JCM) has raised the following key demands:
- Issue of ToR without further delay.
- DA merger with basic pay, as DA has already crossed 50%.
- Parity in pension benefits to address past inequalities.
Fiscal Considerations
The 8th CPC is estimated to cost between 0.60% – 0.80% of GDP, roughly ₹2.4 – ₹3.2 lakh crore. To balance financial pressure, experts expect the government to settle on a fitment factor of 2.6 – 2.7.
Salary and Pension Projections
| Category | Current (₹) | Fitment 2.28 (₹) | Fitment 2.86 (₹) |
|---|---|---|---|
| Minimum Salary | 18,000 | 41,040 | 51,480 |
| Mid-Level Salary | 50,000 | 1,14,000 | 1,43,000 |
| Minimum Pension | 9,000 | 20,520 | 25,740 |
Stay Updated
Since the ToR and appointments are still pending, employees and pensioners should keep track of official announcements at dopt.gov.in. Planning finances early will help manage the impact once the 8th CPC rolls out in 2026.