The 8th Central Pay Commission will be the next significant change in the salary, allowances, and pension structure for about 5 million central government employees and 6.5 million pensioners.
The whole issue has become very important in January 2026 because the Union Cabinet has, at last, sanctioned the constitution of the 8th Pay Commission. This long due approval not only lays the ground for new pay scales but also makes them effective from January 1, 2026.
Cabinet Finally Gives Green Signal
The cabinet’s approval came in the last days of December 2025 to the beginning of January 2026 after a long process of speculation and pressure from employee unions in favor of the 8th Pay Commission
It revokes the greatest obstacle and initiates the formal procedure.
When Will the Commission Start Working?
The government will probably issue the Terms of Reference (ToR) and select the Chairperson and members within 1-3 months.
The Commission will then have 18 months to deliver its final report (most likely by mid-2027).
Expected Effective Date
According to most trustworthy sources, the new salary system will be put into practice starting from 1 January 2026 – a common date after every Pay Commission.
Employees and pensioners will get back pay for the time between the implementation and the actual notification.
What Employees & Pensioners can Expect
The fitment factor (the multiplier for the basic pay revision) is the most talked-about number. The unions are demanding 3.00 to 3.68, which may translate to more than 60% increase in basic pay.
The upward revision of allowances (HRA, TA, DA) and pension is also expected.
Comparison of the Pay Commission Timelines
| Pay Commission | Cabinet Approval Year | Effective From Date | Time Taken to Report | Fitment Factor |
|---|---|---|---|---|
| 6th CPC | 2005 | 1 Jan 2006 | ~3 years | 1.86 |
| 7th CPC | 2014 | 1 Jan 2016 | ~2 years | 2.57 |
| 8th CPC | Dec 2025 – Jan 2026 | 1 Jan 2026 (expected) | 18 months expected | 3.00–3.68 (demanded) |
Current DA and Interim Relief
The Dearness Allowance (DA) under the 7th CPC keeps on going up. DA as of January 2026 is expected to be in the range of 63% to 65% (waiting for the official announcement).
This will continue until the 8th CPC absorbs DA into the basic pay and then resets it to zero.
What Happens After the Report?
After submitting the report, the government will take 6 to 12 months to accept and implement the recommendations (possibly with modifications).
The arrears will be borne in one payment or in installments.
The cabinet’s approval for the 8th Pay Commission in early 2026 is a very favorable move for central government employees and pensioners. The journey is properly begun.
Don’t forget to check DoPT, Finance Ministry, and your employee union portals for the latest updates. Be patient – the wait for new pay scales and arrears has finally taken the right turn!