8th Pay Commission: This time it is going to be a double Diwali Damaka for the Central government employees and the pensioners, as the announcement on the dearness allowance(DA) hike can be expected before Diwali. Experts estimate a 3% increase in DA this time, amid a cooling inflation trend. Currently, DA stands at 55% of basic pay. This will be increased to 58% if the announcement is made. Additionally, there is more good news for central government employees and pensioners. Read on to know the latest updates on the 8th Pay Commission. The hike will benefit over 1.2 crore employees and pensioners in the country before this Diwali.

DA Hike

The DA hike is usually announced twice a year, in February–March and in September–October, with effect from January and July of that year. It is meant to help employees manage the rising cost of living due to inflation.

When will the 8th Pay Commission take effect?

According to National Confederation of Government Employees, the commission is expected to be effective from January 1, 2026. Under this, new salary structures and allowances will be implemented for central government employees and pensioners.

Will there be a Salary Increase for the government employees and pensioners?

The 8th CPC will be replacing the 7th pay commission, hiking the salaries and pensions of the employees. The implementation of the 8th Pay Commission is expected to be majorly in 2026; however, the possibility of delay is also on the cards. The key proposal in 8th CPC, which is expected from January 2026, will impact over 1 crore employees and pensioners. The key proposal is to raise the fitment factor from 2.57 in the 7th CPC to 2.86. If approved, the minimum salary of the central government employees could increase from Rs 18,000 to Rs 51,480 and the minimum pension from Rs 9,000 to Rs 25,740. This will be in addition to hikes in allowances like DA, HRA, and TA.

Impact on crores of employees

Approximately 5 million central government employees and 6.5 million pensioners will benefit from its implementation, as it will result in a 30-34 percent increase in salaries and pensions. Overall, approximately 11.5 million people will directly benefit from this. It is estimated that the new fitment factor could be between 1.83 and 2.86, which will directly impact employees’ basic salaries. The government has approved the 8th Pay Commission, but the formal establishment of the commission and the notification of its terms of reference (ToR) are yet to be issued. The minimum basic pay for Level 1 employees could be revised to ₹51,480, while the minimum pension could increase by approximately ₹20,500 to ₹25,740.