In a surprising move, the Union Cabinet led by Prime Minister Narendra Modi approved the 8th central pay commission for central government employees and pensioners ahead of Budget 2025 on Thursday, January 16. Central government employees now poise to get a pay raise after the government implements the recommendations of the new Pay Commission.

The government gave relief to over 1 crore central government employees and pensioners with this news, who will benefit from the latest development. Notably, the then UPA government set up the 7th Pay Commission on February 28, 2014. The government received the commission’s report in November 2015, and then implemented the recommendations effective January 1, 2016, raising the salary and pension structure of central government employees and pensioners.

At the fitment factor was 2.57, the 7th Pay Commission raised the minimum basic pay for the central government employees from Rs 7,000 to Rs 18,000. Furthermore, the government also raised the minimum pension to Rs 9,000.

8th Pay Commission: 186% Salary Hike And Timeline

Secretary of the National Council of Joint Consultative Machinery (NC-JCM), Shiv Gopal Mishra, has recently said that the new Pay Commission shall consider a fitment factor of “at least 2.86”. This could lead to a significant 186% salary hike for the central government employees.

If the central government approves this fitment factor, the least basic salary of central government employees could rise from Rs 18,000 to a Rs 51,480. Additionally, pensioners’ pension will potentially rise from Rs 9,000 to Rs 25,740 at this fitment factor.

Union Minister Ashwini Vaishnav has indicated that the government will implement the new pay commission starting from 2026 onwards. “Ahead of that, the government has approved the constitution of the 8th Pay Commission so that recommendations are made in a timely manner and can be implemented from 2026 onwards,” said Vaishnav.