New Delhi: The 8th Pay Commission was announced in January 2025 to increase salaries and pensions for central government employees and pensioners. It is expected to give about a 13 percent real salary hike, with the minimum pay likely rising from Rs 18,000 to Rs 30,000 per month. A fitment factor of about 1.8 may be used to recalculate pay.
However, the actual pay hike will not happen soon. The government has not yet finalized the commission members or its detailed plan. Experts say it may take until late 2026 or early 2027 for the new pay to start. Past pay commissions took about 1.5 years to finish their reports, plus several months to implement.
The cost to the government will be around 0.6–0.8 percent of the GDP, which means an extra Rs 2.4 to Rs 3.2 lakh crore in spending. This will directly affect about 33 lakh central employees, mostly lower-grade workers.
Earlier pay hikes boosted spending on cars, groceries, and other items but only for a short time. Part of this new raise is expected to be saved, possibly adding ₹1 to 1.5 lakh crore in savings.
The government is currently discussing the commission plans with ministries and states. The final salary increase will be implemented after the commission’s recommendations are accepted by the government.
Every 10 years, the government reviews salaries and pensions to keep up with inflation and living costs. The 8th Pay Commission will do this next, but the full benefits may take time to reach workers.
