8th Pay Commission: 8th Pay Commission Salary Hike From 1st Jan 2026 Check Fitment Factor And Pension Rules
8th Pay Commission: Great news awaits central government employees regarding the long-awaited 8th Pay Commission. According to reports, the new pay commission, approved by the Prime Minister Narendra Modi-led Union Cabinet, is set to come into effect from January 1, 2026. This implementation is expected to bring significant changes to the salary and pension structures of government employees and retirees.
Central government employees have been eagerly waiting for revisions in their pay structure and an increase in the fitment factor. In this article, we will discuss the potential salary hikes, fitment factor details, and new rules regarding pensions under the 8th Pay Commission.
Potential Overhaul in Salary and Pension
Once the 8th Pay Commission comes into effect, the financial structure for both serving and retired central government employees will be completely revamped. Along with salary hikes, the Dearness Allowance (DA) will be adjusted keeping inflation in mind. Compared to the benefits currently received under the 7th Pay Commission, there is a possibility of a significant increase in the basic salary under the 8th Commission.
According to experts and various media reports, based on the fitment factor, the minimum basic salary of central government employees could rise from ₹18,000 to as high as ₹51,480. Although the government has not yet released the exact percentage of the hike or official figures, this potential increase has sparked hope among employees.
Fitment Factor: What Do Experts Say?
The ‘Fitment Factor’ plays a crucial role in determining salary increases. It is determined based on the country’s economic inflation. Under the 7th Pay Commission, the fitment factor was 2.57. Analysis has already begun on what this figure might be for the 8th Pay Commission.
| Description | 7th Pay Commission | 8th Pay Commission (Expected) |
|---|---|---|
| Fitment Factor | 2.57 | 1.83 to 2.57 (Projected) |
| Minimum Basic Salary | ₹18,000 | Could rise to ₹51,480 |
According to tax experts and economic analysts, while the government has not officially declared any number yet, early expectations place the fitment factor in the range of 1.83 to 2.57. This will impact the income of nearly one crore employees and pensioners.
Confusion and Truth About Pension & DA
Recently, a claim circulated on social media stating that under the new Finance Act 2025, DA hikes for central government pensioners would be stopped. However, the Indian government has dismissed this claim as completely “fake”.
In a social media post on December 13, 2025, the government clarified that post-retirement benefits, such as DA hikes and Pay Commission revisions, would only be stopped if an employee was “dismissed for misconduct”.
Rule 37 of the CCS (Pension) Rules, 2021 has been amended to state that retirement benefits will be forfeited only if an absorbed PSU employee is dismissed for misconduct. There is no cause for concern for general pensioners.
How Many Will Benefit?
Reports indicate that there are currently nearly 50 lakh central government employees (including defence personnel) and almost 65 lakh retired pensioners. The government sets up a pay commission every ten years to evaluate and revise salary and pension structures. The 7th Pay Commission was formed in 2015, and after a long gap of 10 years, considering inflation, real wage erosion, and fiscal capacity, the 8th Pay Commission is set to bring new recommendations.
