8th Pay Commission Implementation Unlikely To Kick In From 1 January 2026 --Check Reasons Behind It

The Union cabinet led by Prime Minister Narendra Modi on 16 January 2025 approved setting up the 8th Pay Commission to revise salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners.

From fitment factor to salary enhancement --both minimum and maximum limit --the recommendation of 8th Pay Commission will be keenly awaited by the central government employees and pensioners. The recommendation of the 8th Pay Commission which will result in revision of salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners.

As per media reports the pay panel will base the fitment factor in the range of 1.92 to 2.86. Should the recommendation of 2.86 fitment factor is given a green signal, the minimum basic salary of a government employee would go up from Rs 18,000 per month to Rs 51,480. The minimum pension, based on the same factor will go up to from Rs 9,000 currently to Rs 25,740.

A Moneycontrol report, quoting Expenditure Secretary Manoj Govil has said expenses related to the 8th Pay Commission were not accounted for in the Union Budget for 2025-26.

The report added that the finance ministry has sought suggestions from the Ministry of Defence, Ministry of Home Affairs, and the Department of Personnel and Training 8th Pay Commission’s terms of reference, since the approval of the same is a pre-before the commission begins its work.

Union Finance Minister Nirmala Sitharaman did not mention any details related to 8th Pay Commission in the Budget 2025, which is indicative that the new pay panel’s recommendations might not kick in the next financial year i.e From January 1, 2026.

Media reports say that the salary calculation formula for the 8th Pay Commission will be akin to the pay calculation it was based for 7th Pay Commission. The Aykroyd formula was the base for deciding salaries of government employees in the 7th Pay Commission. The formula is based on recommendations of Wallace Ruddell Aykroyd — a well known nutritionist and first director of the Department of Nutrition at FAO (Food and Agricultural Organisation) — whose recommendations were based on the food and clothing requirements of the people of a country. The formula gauges wages or payout of employees based on the family's nutritional requirement