8th Pay Commission: The Union Cabinet on Tuesday approved the formation of the 8th Pay Commission. This decision will benefit more than 5 million central employees and approximately 6.9 million pensioners. According to the government, the commission will submit its recommendations within 18 months of its formation. After the cabinet meeting, Union Minister Ashwini Vaishnav stated that the commission has been formed and its recommendations can be implemented from January 1, 2026. He also said that discussions were held with various ministries, state governments, and employees’ organisations while draughting the commission’s framework.
8th Pay Commission: New pay commission is formed every 10 years
In India, the central government constitutes a new Pay Commission approximately every 10 years to review the salaries and allowances of its employees. The last such commission was formed in February 2014, and its recommendations came into effect on January 1, 2016. In July 2025, the government informed Parliament that suggestions had been sought from the Ministry of Defence, the Ministry of Home Affairs, the Department of Personnel, and state governments on the formation of the 8th Pay Commission. Minister of State for Finance Pankaj Chaudhary stated that the government would take a final decision on implementing the commission’s recommendations after receiving them.
8th Pay Commission News: Chairman and Members of the Commission
The government has appointed Justice Ranjana Prakash Desai as the chairperson of the 8th Pay Commission. In addition, Professor Pulak Ghosh of IIM Bangalore and Pankaj Jain, Secretary of the Ministry of Petroleum and Natural Gas, have been appointed members of the commission. While it’s not yet clear how much the 8th Pay Commission will increase employees’ salaries, it’s anticipated that salaries could be substantial.
For example, a Lower Division Clerk (LDC) has a grade pay of ₹1900 and a basic salary of ₹18,000 as per the 7th Pay Commission. Their total salary, including HRA, DA, and travel allowances, comes to approximately ₹37,000 to ₹39,000.
Change in the fitment factor
The Pay Commission considers the fitment factor and minimum basic salary when determining employees’ salaries. In the 7th Pay Commission, the fitment factor was 2.57 times. This time, it is expected to increase to 3 to 3.42 times in the 8th Pay Commission. If the 3-times fitment factor is implemented, the basic salary of a lower division clerk could increase from ₹18,000 to approximately ₹54,000. Adding HRA and other allowances could bring the total salary to ₹59,000 or more.
8th Central Pay Commission: Big relief for employees and pensioners
The 8th Pay Commission will not only increase the income of employees but will also directly benefit pensioners. This will also increase their pension amounts. This government decision has long been a demand of central government employees. Now, with the Commission’s formation, all eyes are on what recommendations the Commission makes in its report and when the government will implement them.
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