The 8th Pay Commission could bring significant salary and pension increases for central government employees and retirees. However, there is no official notification yet regarding its implementation.According to a NDTV report, the minimum basic pay may rise from ₹18,000 to ₹51,480, and a new health insurance scheme could replace the existing Central Government Health Scheme (CGHS), offering enhanced medical coverage.However, delays in the process are already evident.
LiveMint reports that the Commission has not yet been formally constituted, and appointments of the Chairman and members, along with the finalisation of the Terms of Reference (ToR), are still pending. Financial and administrative challenges are contributing to the slow pace.
Adding further context, a Kotak Institutional Equities report suggests that the 8th Pay Commission may not be implemented before late 2026 or early 2027.Kotak notes that previous pay commissions took roughly 1.5 years to submit reports once formed, followed by another 3–9 months for implementation after Cabinet approval. The report also forecasts the minimum pay could rise to around ₹30,000 per month, implying a fitment factor of about 1.8 and a real pay increase of roughly 13%.An Ambit Capital report estimates that salaries and pensions could increase by 30–34%, directly benefiting around 4.4 million employees and 6.8 million pensioners. The brokerage highlights that the 8th Pay Commission will replace the 7th CPC, which was implemented in 2016 and provided a modest hike of about 14%.Ambit Capital adds that the fitment factor — a key multiplier for calculating pay hikes — could range between 1.83 and 2.46. The final figure will influence basic pay, dearness allowance (DA), house rent allowance (HRA), transport allowance (TA), and other components of the net salary.The Ambit report also warns that while the recommendations are tentatively scheduled for January 2026, implementation could be delayed due to the Commission not being formally constituted yet. Such delays could lead to higher arrears payments for employees.Overall, while the 8th Pay Commission promises substantial financial gains for central government employees and pensioners, experts emphasise that these changes are contingent on completing administrative procedures, securing budgetary approval, and finalising the Commission’s recommendations.
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