8th Pay Commission: Millions of central government employees and pensioners are waiting for news on the 8th Pay Commission. This new commission will decide the next big salary hike. The new pay scales are expected to start from January 1, 2026.
However, there is a big delay. The government confirmed it will create the 8th Pay Commission. This news came in January 2025. But many months have passed. The government has not yet announced the names of the chairman or its members.
This delay is making employees worried. Employee unions have started to protest. They are asking the government to act fast. They want the commission to be set up immediately. This is the biggest news for over one crore (10 million) people. This group includes about 50 lakh (5 million) serving employees and 65 lakh (6.5 million) pensioners.
Latest Update: Defence Employees Hold Nationwide Protest
The patience of employees is running out. On October 14, 2025, a massive protest was held. Over three lakh (300,000) defence civilian employees joined this protest. It was called a “National Protest Day.”
The protest was led by employee unions like the All India Defence Employees Federation (AIDEF). They held demonstrations at many defence offices across India.
Their main demands are very clear:
- Form the Commission Now: The unions want the government to immediately announce the 8th Pay Commission. They also want the government to share the “Terms of Reference” (ToR). The ToR is a list of rules and topics that the commission will study.
- Restore Old Pension Scheme (OPS): This is another very big demand. The unions want the government to bring back the Old Pension Scheme for all employees. They are not happy with the new National Pension System (NPS).
- Merge Dearness Allowance (DA): They also want the current Dearness Allowance to be merged into the basic pay.
Union leaders say this delay is not fair. A new pay commission usually takes one or two years to do its work. If the commission is not formed now, it cannot finish its report by 2026. This means the new salaries will be delayed.
What is the Government’s Official Stance?
The government has already said “yes” to the 8th Pay Commission. The Union Cabinet approved the formation of the commission earlier this year. This was a big relief for employees.
So, why is there a delay?
In August 2025, the government gave an answer in Parliament. The Minister of State for Finance, Mr. Pankaj Chaudhary, spoke on this.
He said the government is working on the Terms of Reference (ToR). He explained that the government had asked for suggestions from many groups. This includes employee unions like the National Council (JCM).
The government has received these suggestions. Now, officials are studying all the ideas. This process is called “consultation.” The government says the official announcement will be made after these talks are finished.
But the government has not given a fixed date. This is why employees are worried and protesting.
What is a Pay Commission? A Simple Guide
Many people hear about the “Pay Commission” but are not sure what it is. Here is a simple explanation.
- A Special Panel: The Pay Commission is a special committee. The Government of India sets it up.
- Happens Every 10 Years: This panel is usually formed once every 10 years. The last one was the 7th Pay Commission.
- Its Main Job: Its main job is to review the salaries of all central government employees.
- Why is it needed? Over 10 years, the cost of living increases. Prices of food, housing, and transport go up. This is called inflation. The commission’s job is to make sure salaries are increased to match this inflation.
- Who gets the benefit? It recommends new salaries, allowances (like travel and housing), and pensions. This applies to all central government staff. This includes employees in civilian jobs, the armed forces (Army, Navy, Air Force), and all retired pensioners.
After the commission is formed, it spends many months studying. It meets with union leaders, department heads, and experts. It looks at the country’s economy and the government’s finances. Finally, it prepares a long report with its recommendations. The government then decides whether to accept the report.
What Did the 7th Pay Commission Do?
To understand the 8th Pay Commission, we must look at the 7th.
The 7th Pay Commission was set up in 2014. Its recommendations were started on January 1, 2016. It made some big changes:
- The Fitment Factor: This was the most important number. The 7th CPC used a “fitment factor” of 2.57. This means an employee’s old basic pay was multiplied by 2.57 to get the new basic pay.
- Minimum Pay: Using this formula, the 7th CPC set the minimum basic pay for a new employee at ₹18,000 per month.
- Pay Matrix: It removed the old “Grade Pay” system. It introduced a new, simple chart called the “Pay Matrix.” All employees could find their new salary on this chart.
Now, employees are expecting the 8th Pay Commission to do something similar. They want a new fitment factor and a new, higher minimum pay.
How Much Salary Hike Can We Expect?
This is the biggest question. How much will salaries increase?
Right now, no one knows the exact number. The official number will only come after the commission gives its report. But many experts and news reports are making guesses.
The Fitment Factor Debate: Everything depends on the new fitment factor. Unions are demanding a much higher fitment factor this time. Some reports guess the new fitment factor could be around 3.00. Other reports say it might be lower, like 2.28 or 2.85.
If the fitment factor is 3.00, the new minimum basic pay could be much higher than ₹18,000.
The Minimum Pay Debate: Unions are demanding that the minimum pay should be calculated using a special formula. This formula is called the Aykroyd formula.
The Aykroyd formula is a scientific way to calculate the minimum wage. It is based on the cost of essential items. It calculates the money a family needs for food (calories and protein), clothing, and housing.
The 7th Pay Commission also used this formula to reach its ₹18,000 minimum pay. Unions say that if the formula is used correctly today, with current prices, the minimum pay should be much higher. Some unions have demanded a minimum pay of over ₹26,000.
Overall, many reports suggest that the 8th Pay Commission could recommend a total salary hike of around 30% to 34%. But this is just speculation for now.
The Big Issue: Dearness Allowance (DA)
There is another important topic: Dearness Allowance, or DA.
DA is an extra amount of money the government pays employees. This money is given to help them fight rising prices (inflation). The government increases the DA two times every year.
Currently, central government employees get a DA of 58% of their basic pay. It is expected that the government will announce another hike in January 2026. This could increase the DA to over 60%.
Employee unions have two big demands related to DA:
- Merge the DA: They want the government to merge this 60% DA into the basic pay. This means the basic pay will become higher before the 8th Pay Commission’s new formula is applied.
- Reset to Zero: When a new pay commission starts, the DA is usually reset to 0%. The calculations for DA then start all over again on the new, higher basic pay.
The government has not yet agreed to merge the DA. This remains a key point of discussion.
What Happens Next?
The path to new salaries has a few clear steps.
- Government Announcement: The first step is for the government to officially announce the Chairman and members of the 8th Pay Commission. It will also release the Terms of Reference (ToR).
- Commission Starts Work: The commission will then start its work. This will take at least one year.
- Report Submission: The commission will give its report to the government, probably in late 2026 or even 2027.
- Government Approval: The government will study the report. The Cabinet will then approve it.
- Implementation: The new salaries will be paid to employees.
Even if the final report is delayed until 2027, the new pay will be effective from January 1, 2026. This means employees will get their new salary along with arrears. Arrears are the extra money owed to them from January 1, 2026, until the date the new salary is paid.
For now, all eyes are on the Prime Minister’s Office and the Ministry of Finance. Employees and pensioners are waiting for that one important announcement: the 8th Pay Commission has been officially formed.
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