The 8th Central Pay Commission represents the next major pay increase for more than five million central government employees and about 6.5 million pensioners. The Union Cabinet has scheduled to officially give its nod towards the end of 2025 or the beginning of 2026 and the new pay structure will be effective from 1st January 2026, so the expectation is that it will be done in a very short time, i.e. two to three months.
This is a burning issue at this point in time as the new commission is being set-up, the terms of reference are almost finalized, and around which millions of employees are busy adding up and figuring out the impact of new pay scales, fitment factor along with allowances on their take-home salary and pension.
When was the 8th Pay Commission Approved?
The Cabinet gave the in-principle approval in December 2025 – January 2026.
The official notification along with the chairperson and members’ appointment, are expected very soon (probably within the next 1-3 months).
Expected Effective Date
Almost all reports and past practice suggest 1 January 2026 as the effective date.
This means that revised pay, allowances, and pension are going to be effective from the given date and the arrears will be paid later.
What Is the Fitment Factor?
The fitment factor is just a multiplier which is applied to the old basic pay in order to arrive at the new basic pay.
The 7th CPC used 2.57 times. Currently, unions are demanding a range of 3.00 to 3.68 for the 8th CPC.
Higher factor translates to bigger salary & pension.
Likely Timeline of the Commission
Usually, the commission takes 18 months to submit its report.
Thus, the report submission is expected to be in the range of mid-2026 and early 2027.
Acceptance by the government + implementation usually take another 6–12 months.
Who Will Benefit?
The whole lot of central government employees from each group i.e. Group A, B, C, defence personnel, and central civil pensioners will all be covered under this scheme.
State government employees are not covered under the scheme directly (states have a separate decision-making process).
Expected Areas of Change
- Basic pay revision (through fitment factor)
- Allowances hike (HRA, TA, Children Education Allowance, etc.),
- DA merger and continuity at zero percentage,
- pension revision of pre-2016 and post-2016 retirees.
- Minimum pay and pay matrix restructuring.
Quick Comparison: Past Pay Commissions
| Pay Commission | Effective From | Fitment Factor | Time to Report | Major Salary Jump |
|---|---|---|---|---|
| 6th CPC | 1 Jan 2006 | 1.86 | ~3 years | ~40% average |
| 7th CPC | 1 Jan 2016 | 2.57 | ~2 years | ~23–30% average |
| 8th CPC | 1 Jan 2026 (expected) | 3.00–3.68 (demanded) | 18 months expected | 30–60%+ possible |
The early 2026 approval of the 8th Pay Commission will be a historic event for both central government employees and pensioners. Moreover, it will open the door to new pay scales, higher allowances, and better pensions from January 2026 onwards.
DoPT, Finance Ministry, and your employee union portals will be the places to check for official notifications. The fitment factor and exact pay matrix will get unlocked once the commission submits its report—so, keep this in mind and stay updated!