For lakhs of central government employees and pensioners, the 8th Pay Commission has officially moved beyond speculation. While its formation confirms
that pay and pension revisions are on the way, uncertainty still surrounds eligibility, the likely size of the increase, and the timeline for revised salaries to reflect in bank accounts. The scope of the 8th Pay Commission is limited to central government-linked pay structures. It covers all serving central government employees working across ministries, departments and offices, along with central government pensioners and family pensioners. Employees whose salaries or pensions are calculated using the central civil services pay matrix fall squarely within its ambit. Importantly, the Terms of Reference clearly include retirees, ensuring that pension revisions are an integral part of the exercise and not an afterthought. Who Is Not Automatically Included This is where confusion often arises. State government employees are not covered by default under the 8th Pay Commission. While states may later choose to implement the recommendations, either fully or partially, such decisions remain entirely at the discretion of individual state governments. Similarly, employees working in public sector undertakings, autonomous bodies and statutory organisations will benefit only if their respective governing authorities decide to adopt the revised pay structure. In short, eligibility is guaranteed for central government staff, uncertain for state employees, and conditional for PSU and autonomous body workers. Status Of The 8th Pay Commission The process is now formally underway. The government has constituted the 8th Central Pay Commission, approved its Terms of Reference, and given it a timeline of 18 months to submit its report. Parliament has been informed of this development, and the Finance Ministry has indicated that adequate funds will be arranged once the recommendations are accepted. However, there are no assurances yet on interim relief or the merger of dearness allowance or dearness relief with basic pay at this stage. When Will Salaries And Pensions Rise? Officially, the revised pay is expected to take effect from January 1, 2026. That said, past experience suggests implementation usually lags behind the announced date. Historically, salary revisions are credited several months after Cabinet approval, with arrears paid retrospectively. As a result, employees and pensioners may realistically see revised payouts during FY 2026–27. How Much Of A Hike Is Likely? There is no confirmed figure yet, but early estimates suggest an increase of 20–35 per cent, depending on grade, allowances and the final fitment factor. For comparison, the 6th Pay Commission resulted in roughly a 40 per cent hike, while the 7th Pay Commission delivered a 23–25 per cent impact with a fitment factor of 2.57. Current projections for the 8th Pay Commission place the fitment factor between 2.4 and 3.0, though this will ultimately depend on inflation trends and fiscal considerations. What Employees Should Do Now For now, patience remains key. The commission is operating within a defined timeline, and clarity will emerge gradually through Cabinet decisions and future Union Budgets. What is certain, however, is that the 8th Pay Commission is no longer a matter of speculation; only its timing and final impact remain to be seen.
