The Indus Zone Tech Desk | New Delhi, October 28, 2025 | 8th Pay Commission 2025
The wait for a salary revision among central government employees may soon be over. The Union Cabinet has approved the Terms of Reference (ToR) for the 8th Central Pay Commission (8th CPC), officially starting the process to revise salaries, pensions, and allowances for government staff and pensioners across India.
The new pay commission’s recommendations are expected to take effect from January 1, 2026, potentially increasing monthly salaries by up to ₹19,000, depending on the final fitment factor decided by the government.
Over 1.2 Crore Beneficiaries Across India
According to government estimates, the 8th Pay Commission will directly benefit around 50 lakh central government employees and nearly 69 lakh pensioners. The decision aims to improve the financial well-being of government workers while boosting overall consumption and economic growth.
Who Will Head the 8th Pay Commission?
The government has announced that the 8th Pay Commission will be led by former Supreme Court judge Ranjana Prakash Desai. The panel will include one part-time member and one member-secretary.
It will be given 18 months to prepare and submit its final report, with an interim report expected before that.
Speaking on the matter, Information and Broadcasting Minister Ashwini Vaishnaw said that while the final date for implementation depends on the report submission, it is “most likely to be January 1, 2026.”
Earlier in January 2025, the Cabinet had already given in-principle approval to form the commission.
Expected Salary Hike Under the 8th Pay Commission
The final salary structure is yet to be confirmed, but analysts expect a fitment factor of around 2.86, which could result in a significant pay jump. Based on this projection, the average monthly increase could reach ₹19,000 for mid-level employees.
Here’s how the potential salary revision might look:
If ₹1.75 lakh crore is allocated: Salaries may increase by 14%, taking ₹1 lakh to ₹1.14 lakh/month.
If ₹2 lakh crore is allocated: A 16% hike could raise salaries to ₹1.16 lakh/month.
If ₹2.25 lakh crore is allocated: Employees may see an 18%+ rise, reaching ₹1.18 lakh/month.
The 8th Pay Commission report is expected to be finalized by mid-2026, with implementation between 2026 and 2027, depending on budgetary approvals.
What Is the Fitment Factor and Why Does It Matter?
The fitment factor plays a crucial role in determining the revised salary structure. It represents the multiplier applied to the existing basic pay to calculate the new one.
In the 7th Pay Commission (2016), a fitment factor of 2.57 was used, which resulted in a 157% pay hike — raising the minimum basic salary from ₹7,000 to ₹18,000.
If a similar or higher factor is used this time, the minimum salary could rise from ₹18,000 to ₹46,260, while the minimum pension could increase from ₹9,000 to ₹23,130.
However, some financial experts caution that such a steep increase might not be realistic.
Former Finance Secretary Subhash Chandra Garg recently suggested that the fitment factor might be closer to 1.92, which would still deliver a strong 92% increase, taking the minimum basic pay to ₹34,560.
When Will the Final Salary Be Announced?
Once the interim report is submitted, the government will evaluate the financial impact and finalize the implementation schedule.
If all goes as planned, new salaries and pensions could be rolled out starting January 2026, marking the biggest salary revision for government employees in a decade.
Key Highlights of the 8th Pay Commission 2025
Head: Justice Ranjana Prakash Desai (Former Supreme Court Judge)
Beneficiaries: 50 lakh employees and 69 lakh pensioners
Expected Implementation: January 1, 2026
Likely Fitment Factor: Between 1.92 and 2.86
Expected Salary Hike: Up to ₹19,000 per month
8th Pay Commission: What are the Terms of Service?
The 8th Pay Commission is set to bring a major financial boost for millions of central government employees and retirees. While the final figures are still awaited, the early indicators point to a significant rise in take-home pay starting 2026.
The Commission will comprise one Chairperson, one Member and one Member-Secretary.
It will make its recommendations within 18 months of the date of its constitution.
Employees are eagerly awaiting the commission’s detailed recommendations — which are expected to be announced within the next year — to know exactly how much more they will earn under the new pay scale.
