8th Pay Commission to Take Effect from January 1, 2026: Salary Hike, Pension Revision and Fitment Factor Explained
The Union Cabinet led by Prime Minister Narendra Modi has approved the implementation roadmap of the 8th Pay Commission, which is set to come into effect from 1 January 2026. The commission will revise salaries, pensions and allowances of serving as well as retired central government employees, including defence personnel.
With the effective date approaching, nearly 50 lakh serving employees and around 65 lakh pensioners are closely tracking expected changes in pay scales, Dearness Allowance (DA), and the proposed fitment factor.
Will Central Government Employees Get Immediate Salary Hikes?
While the effective date of the 8th Pay Commission is 1 January 2026, salaries will not increase immediately. As per the Union Cabinet’s notification issued in October 2025, the recommendations of the Pay Commission are expected to be submitted after the effective date, following the standard ten-year cycle.
Historically, pay commissions come into force retrospectively from January 1 of the concerned year, with arrears paid once recommendations are formally approved and implemented.
8th Pay Commission Salary Hike: What to Expect
The government has not yet announced the final percentage increase or the exact fitment factor. However, based on early estimates and past trends, there is strong speculation that the minimum basic pay could rise from ₹18,000 to around ₹51,480, depending on the final fitment factor approved.
The actual hike will vary based on:
- Pay level and grade
- Role and service category
- Years of service
Dearness Allowance (DA) Under the 8th Pay Commission
There were recent claims suggesting that DA hikes for pensioners would be stopped under the Finance Act, 2025. The government has officially clarified that these claims are false.
Authorities stated that:
- DA hikes and Pay Commission benefits will continue for pensioners
- Post-retirement benefits are forfeited only if an employee is dismissed for misconduct
As per the amended Rule 37 of the CCS (Pension) Rules, 2021, only absorbed PSU employees dismissed on disciplinary grounds lose retirement benefits.
Fitment Factor: Key Element of the Pay Revision
The fitment factor is the multiplier used to calculate revised basic pay under a new pay commission. The 8th Pay Commission will assess:
- Inflation trends
- Cost of living changes
- Sustainability of government finances
- Pay structures introduced under the 7th Pay Commission (2015)
A higher fitment factor directly translates into a larger increase in basic salary and pension.
What Lies Ahead?
The 8th Pay Commission is expected to play a critical role in safeguarding employee purchasing power amid inflation while maintaining fiscal discipline. Detailed recommendations on salary slabs, allowances, and pensions will become clear once the commission submits its report to the government.
Until then, central government employees and pensioners can expect status quo in pay and DA, with revisions likely to be implemented later along with arrears, as has been the practice in previous pay commissions.
