8th Pay Commission: What Could Change For Central Govt Employees In 2026? Check Salary And Pension Updates

8th Pay Commission: If approved, the changes proposed by the commission are expected to take effect in January 2026, bringing significant salary hikes and welfare measures for government staff

8th Pay Commission: Over 1 crore central government employees and pensioners are eagerly awaiting an announcement from the Modi government regarding the formation of the 8th Pay Commission. This commission, once established, will provide recommendations on salary and pension revisions based on the nation's current economic landscape.

While no official confirmation has been made, the announcement is widely anticipated during the upcoming Union Budget. If approved, the changes proposed by the 8th Pay Commission are expected to take effect in January 2026, bringing significant salary hikes and welfare measures for central government staff and their families.

Proposed Salary Hike

According to recent reports, the National Council of the Joint Consultative Machinery (NC-JCM) has recommended a salary hike based on a proposed fitment factor of 2.86. If adopted, this would result in salaries increasing by 2.86 times.

The 'fitment factor' is a multiplier used to calculate revised salaries and pensions. Under the 7th Pay Commission, the fitment factor was set at 2.57, which raised the minimum salary from Rs 7,000 to Rs 18,000.

If the proposed 2.86 fitment factor is implemented under the 8th Pay Commission, the minimum basic salary could increase from Rs 18,000 to 51,480, resulting in a substantial boost for employees.

Impact on Pension

The proposed changes will also affect pensioners. At present, the minimum pension is Rs 9,000, calculated with the 7th Pay Commission's fitment factor of 2.57. With the new fitment factor of 2.86, the minimum pension could rise to Rs 25,740, bringing much-needed relief to retirees.

Dearness Allowance and Perks to Be Revised

In addition to salary and pension changes, dearness allowance (DA) and other perks are expected to be revised in alignment with the updated basic salary. DA plays a crucial role in offsetting inflation and is typically reviewed twice a year.

Unified Pension Scheme

Separately, the government is set to implement the Unified Pension Scheme (UPS) from April 1, 2025. Under this scheme, pensions will be calculated based on the employee's salary over the 12 months preceding retirement, which is expected to further enhance retirement benefits.

Awaiting the Official Announcement

While speculation around the 8th Pay Commission continues, employees and pensioners are optimistic that the government will address their concerns in the upcoming Union Budget. If approved, these changes could significantly improve the financial security and quality of life for central government employees and retirees.