8th Pay Commission 2026: What Central Employees and Pensioners Can Expect

8th Pay Commission: While the focus is on raising basic pay and Dearness Allowance (DA), some smaller allowances may be trimmed or merged to simplify the pay structure.

8th Pay Commission

Central government employees and pensioners are eagerly awaiting the implementation of the 8th Pay Commission, which is expected to bring significant changes to salaries, allowances, and pensions. While the focus is on raising basic pay and Dearness Allowance (DA), some smaller allowances may be trimmed or merged to simplify the pay structure.

Salary Hikes and Fitment Factor

The expected salary increments will largely depend on the “fitment factor,” a multiplier applied to the basic pay. Experts estimate this factor to range between 1.83 and 2.86, which could translate into a potential salary increase of 13% to 34%. However, the current DA of 55% is likely to reset to zero and be merged into the basic pay once the 8th Pay Commission is implemented from January 1, 2026.

This reset may moderate the immediate increase, but it could still be beneficial in the long run, as pensions are calculated based on basic pay and DA.

Allowances to Be Reviewed

Following the pattern of the 7th Pay Commission, the 8th Pay Commission is expected to abolish or merge smaller allowances to create a simpler and more transparent pay structure. Allowances that may be impacted include travel allowance, special duty allowance, and certain regional allowances.

For reference, the 7th Pay Commission reviewed nearly 200 allowances, abolishing 52 and merging several others, paving the way for a streamlined salary structure.

Timeline and Implementation

The government had announced the establishment of the 8th Pay Commission in January 2025, but official notifications about its members and Terms of Reference (ToR) are still pending. Based on previous commission timelines, experts anticipate the recommendations may be implemented by early 2028, though any raise will be counted retroactively from January 2026.

Who Will Benefit

Approximately 49 lakh central government employees and 65 lakh pensioners stand to gain from the new pay structure. With a focus on increasing basic pay, revising DA, and rationalizing allowances, the 8th Pay Commission is expected to offer a balanced mix of salary growth and streamlined benefits.