New Delhi, September 26 (Udaipur Kiran News). The central government has officially announced the formation of the 8th Pay Commission, a move set to benefit millions of central government employees and pensioners across the country. The new pay structure, which will take effect from January 1, 2026, is expected to bring a significant rise in salaries and pensions.
Minimum pension hike expected
Currently, the minimum basic pension under the 7th Pay Commission stands at ₹9,000. As per expectations from the upcoming commission, this figure may increase substantially to ₹22,500–₹25,000 per month. The 7th Pay Commission has been in effect since January 1, 2016.
How salaries and pensions will change
The increase will be determined primarily by the fitment factor—a multiplier used to calculate salary and pension hikes. For example, if a pensioner currently receives ₹30,000 and the fitment factor is set at 2.5, the revised pension could reach ₹75,000. On average, pensions and salaries are estimated to rise by 25–30% under the new structure.
Along with basic pay, allowances such as dearness allowance (DA) are also set for revision. At present, DA has reached 50% under the 7th Pay Commission, triggering the need for structural changes. Under the new pay commission, DA will be recalculated on the revised basic salary, ensuring more impactful increments in the future.
Relief for pensioners
A key feature of every pay commission has been to ensure that pensioners’ incomes do not erode with inflation. In the 7th Pay Commission, pensions were aligned to the pay matrix based on grade pay and pay band at the time of retirement. The 8th Pay Commission is also expected to introduce a fresh formula to bring parity between existing pensioners and new retirees.
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