The Union Cabinet, led by Prime Minister Narendra Modi, has approved the 8th Pay Commission, and it will be effective from tomorrow i.e. January 1, 2026. The upcoming pay regime will result in hiked salaries, pensions, and allowances of serving and retired central government employees. Along with these hikes, the 8th Pay Commission will also adjust the Dearness Allowance (DA) to factor in inflation.
As people expect immediate salary hikes, the Union Cabinet clarified in its October 2025 notification, saying, “Usually, the recommendations of the pay commissions are implemented after a gap of every ten years. Going by this trend, the effect of the 8th Central Pay Commission recommendations would normally be expected from 01.01.2026.”
Basic salary of central government employees
While the government has not yet given out details regarding the percentage of hikes to be expected under the 8th Pay Commission, some of the media reports have estimated the hike based on the fitment factor. These reports indicate that a central government employee's basic salary could increase to Rs 51,480 from Rs 18,000.
According to a Mint report, India currently has nearly 50 lakh central government employees, including defence personnel. Along with this, there are 65 lakh retired central government pensioners, including those retired from defence services.
Regarding the DA hikes, the central government debunked a claim that went viral on social media, which said that central government pensioners would stop receiving DA hikes as per the new Finance Act 2025. The government, in its clarification, said that the DA hike and pay commission revision will only be stopped if the employee has been removed for misconduct.
8th Pay Commission Fitment Factor
When it comes to the fitment factor, the 8th Pay Commission will take into consideration several factors, which also include inflation. According to early projections, the fitment factor, which is determined on the basis of the economic inflation of a country, may go as high as 2.57.
