8th Pay Commission: What to expect? Will salary hike miss January 2026 timeline? What we know about Pay Band this time

Mint

13-06-2025

8th Pay Commission News: Around 1 crore central government employees and pensioners are eagerly waiting for the Terms of Reference (ToR) for the 8th Pay Commission, which will serve as the basis for the revisions of salaries and pensions among other things.
The 8th Pay Commission, which is expected to be set up soon, will revise the salaries, pensions and allowances of government employees and pensioners.
But when will the 8th Pay Commission be set up? Will there be delays? How will a delay affect fitment factor? Read on to know the answers.
As per a report by The Economic Times, the 8th Pay Commission may be delayed beyond the expected timeline of January 2026.
The 7th Pay Commission, which was announced in February 2014, came into effect almost two years later in January 2016. That timeline was given to accommodate the time required for submission of reports, approval from the cabinet and subsequent rollout. However, as of mid-2025, there is no report of the 8th Pay Commission being formed, and the ToRs have not been finalised either.
While there are reports of discussions about the commission being underway, the rollout of the 8th Pay Commission may miss the January 2026 timeline. According to the ET report, the implementation may only be done in late 2026 or early 2027.
Over the three decades of pay commissions, the government has experimented with its structure – Grade Pay, Pay Bands, and the Pay Matrix. Each of them have set a norm for how salaries have been revised through the decades.
Before 6th CPC, there were over 4,000 disparate pay scales across roles, which complicated salary calculations.
The 6th Pay Commission introduced Pay Bands and Grade Pay, simplifying the payment process for each role.
The 7th CPC brought the real gamechanger – the Pay Matrix. The commission created a 24-level Pay Matrix, with each cell representing unique salaries. Under the 7th CPC, the fitment factor was revised at 2.57.
While there have been no word on how the 8th Pay Commission will revise salary structures of lakhs of central government employees and pensioners, experts have said that the fitment factor will be kept between 2.5 to 2.8. However, since there is no clarity on even the formation of the commission, nothing can be confirmed as of now.