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Cabinet Approves 8th Pay Commission; Hike for Staff, Pensioners from Jan 2026

The Cabinet, led by Prime Minister Narendra Modi, has approved the formation of a committee to implement the 8th Pay Commission, with recommendations expected by 2026. Union Minister Ashwini Vaishnaw confirmed the decision, highlighting that the new commission will address salary and pension revisions for Central Government employees starting January 1, 2026.

The announcement comes as the 7th Pay Commission, introduced by the Modi government in January 2016, approaches the end of its 10-year term on December 31, 2025. Historically, previous pay commissions, including the 4th, 5th, and 6th, also had similar decade-long durations. Vaishnaw added that the chairman and two members for the 8th Pay Commission will be appointed soon to facilitate its operations.

Central and state government employees have long awaited the establishment of the 8th Pay Commission, which may include significant changes to the fitment factor. Reports suggest a potential increase in the fitment factor from 2.57 to 2.86, leading to a notable rise in basic salaries. This development is expected to positively impact millions of employees and pensioners nationwide.

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