8th Pay Commission: The Union cabinet today authorized the establishment of the 8th Central Pay Commission to evaluate and propose wage adjustments which should be made for more than one crore central government employees and also pensioners. It is reported that the 8th Pay Commission will commence operations from January 1, 2026.

Union Minister Ashwini Vaishnaw said during a Cabinet briefing on Thursday that, “Prime Minister has approved the 8th Central Pay Commission for all employees of Central Government."

Vaishnaw stated that the chairman and two other commissions members from the 8th Pay Commission will be selected without delay.

As per government sources, “Roughly 50 lakh central government employees inclusive of defence staff will gain. Nearly 65 lakh pensioners inclusive of defence personnel will enjoy an increase in their pensions."

They said that nearly 4 lakh employees in Delhi will benefit from it including the defence services personnel and the employees working for the Delhi government.

“Such excellent news complements the government’s other reforms expanding opportunities for manufacturing and ease of doing business… this will promote Consumption and stimulate economic growth,” the sources said. "This will also enhance the standard of living of the government employees.”

For the fiscal year 2016-17, the seventh pay used an additional INR 1 lakh crores.

As per the announcement made by Minister of Information and Broadcasting Ashwini Vaishnaw, The Union Cabinet during a meeting which was headed by Prime Minister Narendra Modi made this decision.

Pay commissions are announced just a few days prior to the annual budget, in what can be described as a ‘hand in hand’ approach. The Union Budget for the year 2025-26 has been slated to be presented on the 1st of February 2025 by the finance minister, Nirmala Sitharaman .

8th Pay Commission: What is the expected percentage increment in government employees salaries?

Earlier recommendations by NGO’s in India have suggested that the lowest salary brackets in the central government could get up to the run away 186% pay rise due to introduction of the 8th pay commission. However, it still all stems as a speculation. The actual amount would only come to light with the submission of the report pertaining the 8th pay commission in 2026.

Mishra took a publicly optimistic stance saying, Shiv Gopal Mishra, Secretary (staff side) of the National Council of Joint Consultative Machinery (JCM) said that he would expect at least the figure of 2.86 to be tackled, with earlier prediction from the previous 7th commission of 2.57 number.

If the 2.86 fitment number is approved by the government, the minimum pay of the government workers will increase by 186 percent to reach Rs 51,480, compared to the Rs 18,000 now paid, as per reports. Salaries will rise in line with an increase in the fitment number. Salaries and pensions of the workers rise with a fitment increase. If the 2.86 fitment that is anticipated proceeds, then following the 8th Pay Commission, pensions will be likely increased by then to Rs 25740, up from the Rs 9000 that they are at present. At present, employees get a basic salary of twelve thousand rupees per month, which has since been raised from seven thousand rupees during the sixth pay commission. What does a pay Commission So, a pays commission is a body that is appointed by the Government for determining salary structures, other allowances and benefits applicable to the government employees. Its recommendations are valued by millions of the employees and pensioners throughout the country. Since India achieved independence in the year of 1947, seven pay commissions have been set up.

The Central Pay Commission normally meets once in 10 years and assesses the salaries, emoluments, and central government employees’ allowances due them and recommends for their adjustment. These recommendations are made considering economic factors such as rate of inflation, to safeguard equitable remuneration.