On January 16, 2025, the 8th Pay Commission was approved that is intended to revise the salaries of 49 lakh employees and 65 lakh pensioners. TORs and committee appointments are yet to be declared as of September 2025, and it is unclear.
Expected Salary Hike
The projections indicate a fitment factor of 2.28 2.86 which could see the minimum salary increase to 41,000-51,480. This 20 35 percent increase will make salaries match with inflation and economic requirements.
Pension Benefits
Minimum pension of 9,000 may be increased to 20,500- 25,740 under the 8 th CPC. Dearness Allowance (DA) will be adjusted back to zero and it will combine with basic pay and further increment will be determined by CPI-IW.
Implementation Timeline
Originally to be effective January 1, 2026, implementation can be postponed to late 2026 or early 2027 because of slow progress in constituting the commission. Delay period will be covered by arrears.
Union Demands
The National Council (JCM) insists on a ToR issue and DA merger with basic remuneration, because DA is over 50. Their other need is the equalization of the benefits of pensioners, which accounts for the historical inequalities.
Fiscal Considerations
The 8 th CPC can impose a cost of 0.60-0.80% of GDP or ₹2.4-3.2 lakh crore on the budgets of governments. A balanced fitment factor of 2.6-2.7 will most likely cope with fiscal strain.
Salary and Pension Projections
| Category | Current Amount (₹) | Fitment 2.28 (₹) | Fitment 2.86 (₹) |
|---|---|---|---|
| Minimum Salary | 18,000 | 41,040 | 51,480 |
| Mid-Level Salary | 50,000 | 1,14,000 | 1,43,000 |
| Minimum Pension | 9,000 | 20,520 | 25,740 |
Stay Updated
As ToR and appointments lag, track updates on dopt.gov.in, employees and pensioners, plan finances and get ready on the effect of the 8th CPC in 2026.
Also read: EPS-95 Pension Hike: Who Qualifies, How Much You’ll Get & What You Need to Do