8th Pay Commission: The complete math of the next salary hike, good news for government employees or a long wait?

8th Pay Commission: 2026 is going to be a crucial year for central government employees and pensioners. The 7th Pay Commission expires on December 31, 2025, and with this, discussions regarding the 8th Pay Commission have intensified. Everyone is wondering how much their salaries will increase and when will they receive their payments?

What steps has the government taken on the 8th Pay Commission?

The government has initiated the process for the 8th Pay Commission. The terms of reference were approved in October 2025. 

The commission has been given approximately 18 months to prepare its recommendations regarding salaries, allowances, and pensions, meaning the report is expected to take some time.

Effective January 1, 2026, but the money will not be released immediately.

The date of the new Pay Commission can be considered to be January 1, 2026, although this does not necessarily mean that employees will receive the increased salaries from that date. Past experience shows that there is a lag of a few months between government approval and actual payment.

There has already been a delay

In retrospect, the 7th Pay Commission was supposed to be implemented in January 2016, but government approval was received in June. 

Subsequently, employees received their arrears some time later. Similarly, the 8th Pay Commission may also require a wait before salary increases. It is believed that actual payments could begin sometime in fiscal year 2026-27.

How much salary increase is expected?

While no official figures have been released by the government, estimates are being made. The 6th Pay Commission saw an average salary increase of around 40 percent, while the 7th saw a salary increase of between 23 and 25 percent. 

The 8th Pay Commission is expected to see salary increases in the range of 20 and 35 percent. Lower-level and entry-level employees, in particular, may see slightly greater benefits.

What will be the fitment factor?

The fitment factor is the basis for determining the new basic salary. In the 7th Pay Commission, it was 2.57, and in the 8th, it is projected to be between 2.4 and 3.0. If this figure remains high, a significant increase in basic pay is likely.

What will the decision depend on?

The final salary hike will depend on several factors, including inflation levels, the government's financial situation, tax collections, and upcoming political decisions. The government is expected to deliver a balanced and realistic salary increase from the 8th Pay Commission.

Eighth Pay Commission