8th Pay Commission: What are the benefits? How much will salary increase for employees and pensioners?

8th Pay Commission News: Central government employees and pensioners are eagerly awaiting for updates regarding new developments linked to the 8th Pay Commission, which is likely to significantly raise their salary and pension.

Here is everything you need to know about the 8th Pay Commission and its benefits.

What is the 8th Pay Commission?

The 8th Pay Commission is a panel set up by the central government to review and revise the salary structure of employees. A pay commission, appointed by the Centre every decade, takes into account factors like inflation, economic growth and living standards before making recommendations to the government about restructuring of salaries.

The 8th Pay Commission will be replacing the 7th Pay Commission, which has been in effect since 2016.

Who will benefit under the 8th Pay Commission?

All Central government employees will get benefits of the 8th Pay Commission when it is implemented. Along with government employees, government pensioners are also set to benefit from the 8th Pay Commission.

In total, around 1.01 crore government employees and pensioners will get the benefits of 8th Pay Commission.

What are the benefits of 8th Pay Commission?

The biggest benefit of 8th Pay Commission is the salary hike that is associated with it.

The 8th Pay Commission is expected to bring in a significant salary hike for government employees and pensioners. According to reports, the salary may increase by 30-34 per cent.

However, it must be noted that Dearness Allowance (currently at 55 per cent of basic pay) will be reset to zero once the 8th Pay Commission is implemented.

The salary increase will depend upon how many times the fitment factor is increasing. At the lower band, the fitment factor is expected to be 1.83x and at the upper band it is likely to be 2.46x.

When will 8th Pay Commission be implemented?

While the 7th Pay Commission is set to expire in January, 2026, there has been no update yet about the 8th Pay Commission panel. The government had announced the 8th Pay Commission in January 2025.

Since the 8th Pay Commission has not been constructed yet, the implementation could be delayed to 2027, according to reports.