8th Pay Commission 2026: The Union Cabinet, led by Prime Minister Narendra Modi, took a significant decision on Thursday. Union Minister Ashwini Vaishnav announced that the 8th Pay Commission will be constituted to review the salaries, pensions, and allowances of central government employees and pensioners. This announcement comes just days before Budget 2025, raising a wave of hope among government employees and retired officials.
The 8th Pay Commission will recommend changes to the salaries, dearness allowances, and pensions of government employees and pensioners, with a special focus on inflation and rising costs of living. The Commission’s recommendations will be prepared taking into account the government’s financial situation, the needs of employees, and future financial plans.
According to government sources, no official percentage of salary increase has been decided yet. However, reports suggest that the minimum basic salary could increase from ₹18,000 to ₹51,480, depending on the fitment factor. The fitment factor is a multiplier used to calculate salaries and pensions, taking into account inflation, the state of the government treasury, and the needs of employees.
This change will benefit approximately 5 million central government employees and 6.5 million pensioners, including defense personnel and retired officers. This move will strengthen the financial security of government employees and improve their standard of living.
According to reports, the commission is expected to be constituted by 2026, and its recommendations are anticipated to be implemented as of January 1, 2026. This move will bring long-awaited relief to employees and pensioners.
The Pay Commission is constituted every 10 years and its primary function is to review the salaries, allowances, pensions, and bonuses of government employees and pensioners. It prepares recommendations taking into account inflation, the state of the government treasury, and the economic situation. Since 1946, seven Pay Commissions have functioned, and the recommendations of the 7th Pay Commission were implemented in 2016. This new move by the Modi government will advance this 10-year cycle and improve the financial well-being of employees.
This news brings significant relief to government employees and pensioners. The 8th Pay Commission could positively impact the common man’s pocketbook not only through salary increases but also through dearness allowances and pension reforms. All eyes are now on the Commission’s recommendations, which will provide a new direction to the financial security of millions of employees and retirees in the coming years.