In a written reply in Parliament, Minister of State for Finance Pankaj Chaudhary confirmed that the 8th Central Pay Commission was formally constituted on November 3, 2025. The Commission has been given 18 months to submit its recommendations on salaries, allowances, and pensions of central government employees. He also noted that the financial implications will only be known after the recommendations are finalised and accepted.
The Commission is currently gathering feedback from a wide range of stakeholders. A questionnaire has been made available on the MyGov portal, inviting responses from ministries, departments, state governments, employees, pensioners, unions, academicians, and individuals. The deadline for submitting responses is March 31, 2026, and only online submissions are being accepted.
Although the new pay structure is expected to be effective from January 1, 2026 on paper, the actual implementation may take longer. Experts suggest that revised salaries may only start reflecting in bank accounts toward the end of 2026 or during the financial year 2026–27, similar to delays seen after previous pay commissions.
Arrears, however, are likely to be paid. Even if the revised salaries are implemented later, they are expected to be calculated from January 1, 2026, marking the end of the 7th Central Pay Commission cycle.
There is no official confirmation yet on the extent of the salary hike. Past trends offer some context: the 6th Central Pay Commission resulted in an average increase of around 40%, while the 7th Pay Commission had an overall impact of approximately 23–25%, with a fitment factor of 2.57. Early estimates for the 8th Pay Commission suggest a possible increase in the range of 20–35%, with a projected fitment factor between 2.4 and 3.0.
However, these projections remain speculative. The final outcome will depend on multiple factors, including inflation trends, fiscal capacity after the 16th Finance Commission, tax revenues, and broader economic and political considerations.
For now, while the process has become clearer, the exact impact on salaries and pensions will only be known once the Commission submits its recommendations and the government takes a final decision.
