Govt gives big update on 8th Pay Commission in Lok Sabha
Babushahi Bureau
New Delhi, July 22, 2025:In a significant development, the 8th Pay Commission will be implemented across India starting January 1, 2026, as confirmed by Minister of State for Finance Pankaj Chaudhary in a written reply to the Lok Sabha today.
The implementation of the new Pay Commission will lead to a hike in salaries, pensions, and allowances of central government employees and pensioners. Approximately 50 lakh central government employees and 65–68 lakh pensioners are expected to benefit from the revised pay structure.
The Finance Ministry has already begun gathering suggestions from various ministries, departments, and state governments to draft the recommendations. The core aim of the 8th Pay Commission is to adjust pay structures in line with inflation and current economic conditions, thereby enhancing the standard of living for government employees. Earlier, on January 16, 2025, the formation of the 8th Pay Commission was approved by the Union Government.
Union Minister Ashwini Vaishnaw had indicated that the Commission’s recommendations would take effect from January 1, 2026, marking the conclusion of the 7th Pay Commission’s term on December 31, 2025.
The eventual increase in basic pay will depend on the fitment factor recommended by the Commission — a key determinant in calculating salary revisions. The higher the fitment factor, the greater the salary hike for employees under the new pay structure.