New Delhi, 1st Aug 2025: The recommendations of the 8th Pay Commission will be implemented across India starting January 1, 2026. The Central Government had approved the formation of the Pay Commission on January 16, 2025. The Commission will review the salary structure, pension, and other benefits of lakhs of central government employees and pensioners.
Once implemented, over 50 lakh central government employees, including defense personnel, and about 65 lakh pensioners are expected to benefit from revised pay, pensions, and allowances.
It is anticipated that under the 8th Pay Commission:
- The minimum basic salary of Level-1 employees may increase from ₹18,000 to ₹26,000–₹29,000.
- A fitment factor of 2.86 may be applied to calculate revised salaries across levels.
- Pay hikes for other categories of employees will also be based on the fitment factor.
- The Commission has been advised to rationalize the grade structure across different levels.
- However, Many Employees Not Entirely Satisfied
Despite the expected salary hikes, a large section of employees remain dissatisfied. They are demanding the restoration of the Old Pension Scheme (OPS) instead of the New Pension Scheme (NPS) introduced after 2004.
Employee unions are pressing for:
- Reinstatement of OPS for those who joined government service after 2004.
- Improved health and education benefits.
- Stronger social security provisions.
Representatives of employee associations argue that the new pension scheme lacks adequate retirement security, and that the old system must be reintroduced to ensure financial stability after retirement.