Central government employees and pensioners are eagerly awaiting the formation of the 8th Pay Commission, as the current 7th Pay Commission approaches the end of its 10-year cycle in January 2026. Over one crore employees and pensioners have been advocating for a new commission to address rising inflation and ensure a significant salary revision.
Likely Timeline for 8th Pay Commission Formation
Based on historical patterns, a pay commission is constituted approximately every 10 years. The 7th Pay Commission, formed in 2014, came into effect in January 2016—10 years after the implementation of the 6th Pay Commission in 2006.
Media reports suggest the 8th Pay Commission could be formed in 2025, allowing sufficient time for its recommendations to be implemented by 2026. However, the government has previously denied plans to establish a new pay commission, leaving its formation uncertain.
Expected Salary Hikes
In the 7th Pay Commission, salaries saw an average 23% hike, though this was lower compared to the increases under the 6th Pay Commission.
Reports indicate the minimum basic salary could rise from ₹18,000 to ₹34,500 under the 8th Pay Commission, marking an increase of ₹16,500.
Changes in DA Hike Formula
Currently, Dearness Allowance (DA) is revised twice yearly using the 7th Pay Commission formula. The 8th Pay Commission might introduce a new DA calculation formula. Suggestions from the Economic Survey 2024 include excluding food inflation from India’s inflation-targeting framework, which could influence future DA hikes.
Employee Expectations
With inflation continuing to rise, central government employees are optimistic that the 8th Pay Commission will address their concerns and deliver a fair and substantial revision in wages and benefits. While the government has not yet confirmed its plans, employee demand for its formation is growing stronger.