8th Pay Commission from January 2026: Salary Hike Explained

8th Pay Commission: Clearing the Salary Hike Confusion

The 8th Central Pay Commission (8th CPC) has triggered widespread expectations of an immediate salary increase for central government employees from January 1, 2026 . However, this assumption reflects a misunderstanding of how pay commission reforms are implemented in India. While January 2026 is being discussed as the effective date , it does not mean salaries will be revised from that day.

What the 8th Pay Commission Does

A Pay Commission is constituted to review and recommend changes in pay scales, allowances and pensions of central government employees and pensioners. The 8th Pay Commission, notified in November 2025 , has been given nearly 18 months to study pay structures and submit its report to the government.

Effective Date vs Actual Implementation

Historically, pay commissions follow a two-stage process.

• Effective Date: January 1, 2026

• Likely Implementation: Late 2027 or early 2028

This means salaries will continue under the 7th Pay Commission until the Union Cabinet approves the 8th CPC recommendations. Once implemented, employees will receive arrears retrospectively from January 2026 , rather than an immediate hike.

Fitment Factor and Expected Salary Increase

The fitment factor , used to revise basic pay, is expected to range between 1.83 and 2.46 , similar to earlier commissions. Analysts estimate a realistic salary increase of around 14% , while higher hikes of over 50% are considered fiscally unlikely.

Dearness Allowance and Coverage

The government has clarified that Dearness Allowance (DA) will not be merged with basic pay. DA will continue to be revised every six months based on inflation trends.

Who Will Benefit

The revision will impact over 50 lakh employees and 65 lakh pensioners , covering salary, pension and allowances.

Important Facts for Exams

• 8th Pay Commission notified in November 2025

• Effective date: January 1, 2026

• Implementation likely after Cabinet approval

• DA will not be merged with basic pay

• Fitment factor revises basic salary