8th Pay Commission: Central Government Employees Likely to Get 30–34% Salary Hike from 2026

8th Pay Commission (8th CPC) to bring 30–34% salary and pension hike for over 1.1 crore central government employees and retirees. Expected implementation from January 1, 2026. Check fitment factor, timeline, and impact.

September 07, 2025 08:49 AM

New Delhi, September 2025 – The long wait for central government employees and pensioners is set to end soon, as the 8th Pay Commission (8th CPC) prepares to bring a significant salary and pension hike. Reports indicate that the commission may recommend an increase of 30–34% in basic pay and pension, benefiting nearly 1.1 crore employees and retirees across India.

Implementation Timeline

The new pay structure is expected to come into effect from January 1, 2026. However, sources suggest there may be minor delays in rolling out the recommendations due to administrative formalities like finalizing the Terms of Reference (ToR) and commission appointments.

Fitment Factor – Key to Salary Hike

The fitment factor, which acts as a multiplier on the existing basic salary, will play a decisive role in determining the pay hike.

• Current projections place it between 1.8× to 2.46×.
• At this rate, a basic salary of ₹18,000 could increase to anywhere between ₹32,940 and ₹44,280 under the new pay structure.
• Some early reports also indicate that entry-level pay could rise from ₹50,000 to ₹70,000, marking a steep jump of nearly 40–50% in certain categories.

Who Will Benefit?

The 8th CPC will cover both serving employees and pensioners, ensuring that over 11 million stakeholders benefit from higher salaries and pensions. The hike will provide much-needed relief against inflation and is also expected to boost spending power across the economy.

Last Hike Under 7th CPC

Currently, employees are awaiting a 3% DA (Dearness Allowance) hike under the 7th Pay Commission, which will be the final revision before the 8th CPC takes over in 2026.

Key Highlights at a Glance

• Salary Hike: 30–34% expected under 8th CPC.
• Fitment Factor: Likely between 1.8× and 2.46×.
• Effective Date: January 1, 2026 (may extend due to delays).
• Beneficiaries: Over 1.1 crore central government employees and pensioners.
• Impact: Significant rise in disposable income and economic activity.

👉 The 8th Pay Commission is not just about higher salaries but also about reshaping allowances, pensions, and incentives for the next decade. Employees are eagerly awaiting official announcements, which are expected by late 2025.