The 8th Pay Commission, approved in principle by the Union Cabinet, is set to transform central government wages once implemented in full, perhaps by 2028, even as its actual date of roll-out is still January 1, 2026. This implies over 5 million current employees and 6.5 million pensioners will stand to receive two years' arrears once the new suggestions kick in.
If the proposals of the commission go on as expected, the entry-level basic pay of central employees (Level 1) can go up from the existing ₹18,000 to ₹44,000 a month. This is according to a proposed fitment factor of 2.46, which is lower than the 7th Pay Commission factor of 2.57 but still guarantees a hefty hike.
The amount of the salary hike under the new commission is propelled by the fitment factor, a major multiplier that is applied to hike the current basic pay upwards, considering inflation and cost of living. To put it in perspective, the fitment factor in the 7th Pay Commission was 2.57. In the case of the 8th, it is anticipated to land at 2.46.
Every Pay Commission reinitializes Dearness Allowance (DA) to zero since the new basic pay already accounts for existing inflation; DA then begins accumulating once again, incrementally increasing over the next Pay Commission cycle.
Traditionally, each Pay Commission has consumed two to three years to have its recommendations fully implemented, after a report drafting, approval, and notification lag.
While the effective date is as early as February 2026, finalizing commission members, establishing terms of reference, and releasing the formal notice ensures that central staff might realize the full gains only as late as 2028. Yet, all increases are accounted for and paid out from January 2026, leaving two years' worth of arrears at rollout.
The 5th Pay Commission (established in April 1994) had its suggestions applied from January 1996.
The 6th Pay Commission (established in October 2006) was effective from January 2006 following its report's approval in August 2008.
The 7th Pay Commission (established in 2014) had its report accepted in 2016, with benefits retroactively to January of the year.
It is a multiplier, determined by the Pay Commission,to make up for inflation and higher cost of living on earlier basic salaries. The more elevated the factor, the higher the wage hike with each payment commission cycle.
While 2026 is the technical commencement date, central staff and pensioners need to be ready for the two-year implementation deficit, with final payment and revised pay scales due by 2028. The notification, commission members, and terms of reference are yet to be finalized, according to government sources.