8th Pay Commission: Central government employees and pensioners were hoping that Finance Minister Nirmala Sitharaman could make some big announcement on the 8th Pay Commission in the Union Budget 2025. But there was no discussion on this in the budget speech.
8th Pay Commission: Central employees and pensioners may have to wait longer for the 8th Pay Commission (8th Pay Commission 2025). Earlier it was expected that it could be implemented from January 1, 2026, but now it does not seem to be happening. Due to the recent indications of the government and no mention of it in the Budget 2025-26, it seems that its implementation will happen after 2026.
No fund allocation in Budget 2025-26
Central government employees and pensioners were hoping that Finance Minister Nirmala Sitharaman could make some big announcement on the 8th Pay Commission in the budget (Union Budget 2025). But there was no discussion on this in the budget speech. This means that no funds have been allotted for this in the budget 2025-26. In such a situation, it is being speculated that the government may include it in the budget of 2026-27.
8th Pay Commission likely to be implemented from January 1, 2026
The tenure of the 7th Pay Commission is ending on 31 December 2025. For this reason, it was being speculated that the 8th Pay Commission could be implemented from January 1, 2026, but now the possibility of its postponement has increased.
Last month, the government announced the formation of the 8th Pay Commission and also said that its panel members will be appointed soon. It will have a chairman and two members who will give recommendations to the government. According to reports, this panel may submit its recommendations early next year.
According to Manoj Goel, Expenditure Secretary, Ministry of Finance, it will take at least one year for the 8th Pay Commission report to be prepared and approved. Earlier, the 7th Pay Commission took more than 18 months to prepare its report. In such a situation, it is expected that its recommendations will come in the financial year 2026-27 and after that the government will consider implementing it.
How much will salary and pension increase?
When the 8th Pay Commission is implemented, the salary of central employees and pension of pensioners will increase according to the Fitment Factor. According to reports, the Fitment Factor can be between 1.92 to 2.86. If the 2.86 Fitment Factor is implemented, the minimum basic salary of government employees will increase from 18,000 to 51,480. Similarly, the minimum pension can increase from 9,000 to 25,740.
Central employees and pensioners waiting for the budget of 2026-27
Overall, the government has not yet given any official timeline on the recommendations of the 8th Pay Commission. But it has become clear that the possibility of its implementation from January 1, 2026 is very low. Now central employees and pensioners may have to wait till the budget of 2026-27.
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