8th Pay Commission: How will it impact your salary?
What's the story
The Indian government is expected to form the 8th Pay Commission by January 2026, which aims to revise allowances, pensions, and salaries for current and retired central government employees. The announcement regarding the potential benefits was made by Union Minister Ashwini Vaishnaw in January this year. Nearly one crore central government employees and pensioners are awaiting its Terms of Reference (ToR).
Beneficiaries
Who are the beneficiaries?
The 8th Pay Commission will benefit some 50 lakh central government employees, including defense personnel. It is also expected to benefit nearly 65 lakh central government pensioners, including retired defense personnel. The implementation of this commission is likely to have a major impact on the salaries and pensions of these beneficiaries.
Salary adjustments
What will be the salary hike?
Though the government hasn't officially announced the percentage of salary hikes under the 8th Pay Commission, it is expected to be significant. An Ambit Institutional Equities report suggests that recommendations from this commission could increase salaries of government employees and pensioners by 30-34%. After its implementation, Business Today reports that the minimum basic salary could be revised from ₹18,000 to ₹51,480.