India begins 8th Pay Commission review; salaries, arrears likely from Jan 2026

Timeline Set: The commission has been given 18 months from its constitution in November 2025 to submit its recommendations on pay, allowances and pensions. The financial impact of the salary revision will only be known after the commission submits its report and the government reviews and approves the recommendations before implementation.

Current Pay Structure: Under the 7th Pay Commission implemented in 2016, the minimum basic pay for central government employees was fixed at ₹18,000 per month, while the maximum basic salary was set at ₹2.5 lakh per month. The 8th Pay Commission will review the existing pay structure, including minimum pay, fitment factor, allowances and pension structure.

Effective Date, Arrears: The 8th Pay Commission is expected to be effective from January 1, 2026. Even if the revised salaries are implemented later, arrears are likely to be calculated from this date, which marks the end of the 7th Pay Commission cycle. Employees may receive arrears after the government approves and implements the new pay commission recommendations.

Hike Expectations: Early estimates suggest a possible salary increase of around 20 to 35 percent under the 8th Pay Commission. The fitment factor is expected to fall roughly between 2.4 and 3.0, though projections may change. Final salary revisions will depend on inflation trends, government finances, tax revenue and the recommendations of the 16th Finance Commission.

Overall Impact: If higher fitment projections are approved, the minimum basic pay could increase significantly from the current ₹18,000 level. Arrears payments may vary depending on salary levels, with higher-salaried employees likely to receive larger arrears. The commission’s final report is expected within about 14 to 18 months, after which salaries, pensions and arrears will be revised.