The central government had announced the approval of 8th Pay Commission on 16 January 2025, but it has not been formally started till date. Neither the chairman and members of the Commission have been appointed, nor the terms of reference (Terms of Reference, Tor) have been fixed.

More than 1.2 crore central employees and pensioners of the country are eagerly waiting for this news, but the question is the same – will the new pay scale be applicable from 1 January 2026? At the moment, expectations seem to be tarnishing. Let us understand this matter deeply and know what is the future of 8th Pay Commission.

Pay Commission Delay: What is the real reason?

The term of 7th Pay Commission ends on 31 December 2025, but the delay in the formation of 8th Pay Commission has increased the concern of the employees. The government has recently issued a deputation circular for 35 staff posts, which indicates that the preparation of the Commission has started.

Nevertheless, it is taking time to finalize Tor and install the commission structure. Experts believe that if the formation occurs in the end of 2025 or early 2026, the report of the Commission will be prepared only by 2027 or 2028. After this, it may take more 6-8 months to be implemented. That is, it seems difficult to implement the new pay scale before 2028.

What happened earlier: Experience of last pay commissions

If we look at the history of the previous pay commissions, it is not new to take time in the process. The 6th Pay Commission was formed in October 2006, and its report came in March 2008. It was approved in August 2008 and was implemented from 1 January 2006.

Similarly, the 7th Pay Commission was formed in February 2014, the report of which came in November 2015 and in June 2016 it was approved by the cabinet. It also came into force from 1 January 2016. The recommendations in both cases came into effect from the retroactive date, and the outstanding amount was paid in a phased manner.

Given this pattern, if the government wants, the 8th Pay Commission can also be implemented from 1 January 2026, but it depends on political will and economic condition.

Demand for employee organizations: What do employees want?

Central employee organizations have placed many important demands before the government. These include determination of minimum wage for a five -member family, merger of salary levels, and amendment of pension rules every five years. Apart from this, the restoration of commuted pension after 12 years and 50% dearness allowance (DA) in the basic salary is also his major demands.

Employees and pensioners want the new pension scheme (NPS) improve and inflation relief (DR) should be increased. The government’s attitude on these demands is not yet clear, but staff organizations are constantly pressurizing.

How much will the expectation of increase in salary?

The most discussed Fitment Factor about 8th Pay Commission. If this factor is fixed between 1.92x to 2.86x, the basic salary may increase drastically. For example, the current basic salary of Rs 18,000 can increase to up to Rs 51,000.

Pensioners can also get additional benefits under inflation relief and new pension scheme. However, all this will remain anticipated until the formation of the Commission and the Tor is approved. Employees will have to be patient now.