The government has approved the formation of the 8th Pay Commission to revise salaries and pensions for central government employees and retirees. While the proposal has received the green signal, over one crore employees and pensioners are now eagerly waiting for the official announcement

When is the 8th Pay Commission likely to submit its report?

According to a report by Ambit Institutional Equities, the 8th Pay Commission is likely to submit its recommendations by the end of 2025. If things go as planned, the new pay structure is expected to come into effect from January 2026. However, the final rollout will depend on when the report is completed, submitted to the government, and approved.

How much salary hike is expected under the 8th Pay Commission?

With the commission approved, the 8th Pay Commission’s recommendations are expected to be implemented in FY27. As per the report, salaries and pensions of central government employees could see a hike of around 30–34 per cent.

What Will It Cost the Government?

The expected 30–34 per cent increase in salaries and pensions could cost the government around Rs 1.8 lakh crore, according to the report. This hike is largely driven by the fitment factor a key multiplier used by pay commissions to revise pay, pensions, and allowances. It helps determine final salary figures by factoring in inflation, employee needs, and the government’s financial position.