The Central government has granted 18 months to the 8th Pay Commission to submit its recommendations that will set the stage for a potential revision in salaries, pensions and allowances for millions of people in the country.
In the Parliament, the Ministry of Finance has confirmed that the central government constituted the 8th CPC on Nov. 3, 2025. Minister of State for Finance Pankaj Chaudhary said the commission is expected to submit its report after reviewing pay structures within a defined timeline.
"The Commission will make its recommendations on various issues such as pay, allowances and pension within 18 months of its constitution," Chaudhary said in a written reply.
This indicates that while the recommendations could arrive by mid-2027, any revision in pay scales will most likely be implemented later. There are reports, though, saying that arrears could be calculated retrospectively from Jan. 1, 2026, in line with past practice.
What Previous Commissions Suggest About Salary Changes
A key factor under review is the "fitment factor," a multiplier used to revise basic salary. A fitment factor of 2.0 would double the basic pay.
Several employee unions have recommended higher factors like 3.0–3.25 to boost real income, especially when it comes to lower-level government employees.
During the 7th Pay Commission, the central government applied a uniform fitment factor of 2.57. At that time, it had also replaced the earlier pay band and grade pay system with a pay matrix.
Under the 7th CPC, the minimum basic salary was increased from Rs 7,000 under the 6th CPC to Rs 18,000. The maximum pay reached Rs 2.5 lakh per month.
Notably, the 6th CPC was implemented in 2008 with retrospective effect from 2006. At that time, the minimum entry-level salary in Pay Band-1 was Rs 6,600. It maintained a 1:12 ratio between minimum and maximum pay.
ALSO READ: 8th Pay Commission: How 6th And 7th CPC Set The Fitment Factor And What To Expect Now
8th Pay Commission Salary Hike: What To Expect?
Multiple reports suggest that the 8th Pay Commission might retain the fitment factor around 2.57, potentially leading to a 30–34% hike in basic pay. This means that the minimum basic pay at Level 1 could rise to around Rs 46,000 per month. Notably, a fitment factor of 2.0 will take it to Rs 36,000. Salaries across higher levels will also increase proportionately, which could significantly impact the government's wage bill.
The 7th Pay Commission's term ended on 31 December 2025, making a revision due under the usual 10-year cycle followed by the government.
Apart from the basic pay, the 8th CPC will also examine other key aspects such as allowances, pension structures and annual increments that currently stand at 3%.
The final recommendations could further reflect changes in inflation trends as well as cost-of-living adjustments since the last revision.
The final outcome of the 8th CPC will depend on the commission's methodology and government approval.
ALSO READ: 8th Pay Commission Update: Timeline, Salary Hike Estimate, Arrears Status — All You Need To Know
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