The government has released a major update regarding the 8th Pay Commission. Although the government has given some clarity regarding the 8th Pay Commission for lakhs of employees and pensioners, complete information is not available yet. In Parliament, the government indicated when the 8th Pay Commission is likely to be implemented. Minister of State for Finance Pankaj Choudhary said the government formally constituted the 8th Central Pay Commission on November 3, 2025. He further said that the commission has been given 18 months time to submit its report containing recommendations on salaries, allowances and pensions of central government employees. When asked when the 8th Pay Commission will be implemented, he explained that it will become clear only when the report is submitted and thereafter it will be accepted. Only then can a decision be taken regarding the effective date of implementation of the commission. Currently, the Commission is in the process of preparing its report on the matter.
Reaction on 8th Pay Commission
As per the available information, the 8th Pay Commission is not adopting the traditional approach for its work. Instead, it is actively seeking suggestions from a variety of different categories. A set of 18 questions has been uploaded on the MyGov portal. Feedback has been sought from various ministries, government departments, state governments, employees, pensioners, trade unions, academicians and even the general public. The last date for submission of responses is March 31, 2026, and entries will be accepted through online mediums only.
When will the salary increase?
With regard to pay, it said that even if the actual implementation of the 8th Pay Commission is delayed, its provisions will be deemed to be effective retrospectively from January 1, 2026. However, it may take a long time for the benefits of this implementation to actually reach employees. CA Manish Mishra, Founder, GenZ CFO has clarified the reasons behind this possible delay. He says that it is true that on paper, the 8th Pay Commission is scheduled to be implemented from January 1, 2026, but in reality, the increased salaries will probably reach the bank accounts of employees only by the end of 2026 or in the 2026-27 financial year—just like there was a delay after the previous pay commissions.
Employees will get their dues
He also informed that, under the 8th Pay Commission, there is a possibility of getting the outstanding payments. Although the new salary may be paid later, it will be counted from January 1, 2026 only. This date is the date of expiry of the tenure of the 7th Pay Commission.
How much will the salary increase?
No official information has come yet about the increase in salary; However, initial estimates suggest that salaries will increase. Prateek Wahi, managing director and chief vision officer, Karma Management Global Consulting Solutions, said expectations look good considering past trends and current economic conditions.
He said that there seem to be two main reasons behind this increase in salary: the work of previous commissions and the current condition of the economy. Under the 6th Pay Commission, salaries had increased by about 40 per cent, while under the 7th Pay Commission the increase was about 23 to 25 per cent—including a fitment factor of 2.57. The salary structure under the 8th Pay Commission is also expected to be decided on the basis of these parameters.
Experts stressed that these are just estimates, and the final decision will depend on a variety of data points. He explained that according to most estimates for the 8th Pay Commission, there could be a salary increase of 20 to 35 percent, which includes both the basic salary and the fitment factor of between 2.4 to 3. However, the final figures will ultimately depend on inflation rates, availability of money and political will over the next 12 to 18 months.