The 8th Central Pay Commission (8th CPC) is going to change the salary, allowances, and pensions for more than 50 lakh employees of the central government and about 69 lakh retired persons. However, the end of the 7th Pay Commission is on December 31, 2025, and thus await more news and information eagerly.
Currently, in December 2025, the process has been a bit slow to move ahead but there has been some delay in the pre-steps. The commission is at work but the time when the pay hike will actually take place is not fixed yet.
What is the 8th Pay Commission?
The 8th CPC every ten years takes a look at pay scales and makes recommendations on changing them. It includes things such as the basic salary, dearness allowance, pension, etc.
In January 2025, the government made the announcement, following the usual pattern after the 7th CPC which was initiated in 2016.
Timeline of Key Events
In January 2025, the Cabinet gave its approval to the plan. The Terms of Reference (ToR) were announced on November 3, 2025, after discussions among the various stakeholders.
It is said that the commission will need 18 months to complete its report, which means it could be ready by mid-2027.
Reasons for Delay
Setting up the ToR and making the appointments took longer than it did for some past commissions. This was mainly due to the consultation process with ministries and states.
By the end of 2025 everything got faster and the ToR was cleared.
Expected Date of Implementation
As a rule, the recommendations are expected to be made effective from January 1, 2026. If approved later, arrears will be paid from that date.
However, the complete rollout may take place by late 2027 or in 2028 after the government review.
Possible Salary Hike
Analysts are estimating a salary raise of about 20-35% with a fitment factor of 2.4 to 3.0.
The minimum basic salary might go up considerably which would be of the highest help to the lower rung in the salary hierarchy.
Impact on Allowances and Pensions
Pensions are completely included. Dearness Allowance keeps on being separate – no merger with basic pay.
Some allowances like HRA may not be paid in full if implementation delays have taken place.
Delay Comparison with Past Commissions
Below is a table showing the time taken from the announcement to the main steps:
| Pay Commission | Announcement Year | ToR Notification Delay | Report Submission | Implementation |
|---|---|---|---|---|
| 6th CPC | 2005 | Short | 2008 | 2006 (with arrears) |
| 7th CPC | 2013 | About 5 months | 2015 | 2016 |
| 8th CPC | 2025 | About 10 months | Expected mid-2027 | Likely 2027-2028 |
What Happens Next
The commission will have meetings with the stakeholders and will analyze the data. If necessary, interim reports may be issued.
DA increases will keep on being calculated under the old system until the new rules come into effect.
The 8th Pay Commission is now in progress, but the initial delays have caused the timeline to be pushed back. Revisions can be expected by 2026, but the actual benefits may not be available until 2027 or later.
You can keep yourself informed through official channels like the Finance Ministry’s website or PIB. Check reputable news for announcements and plan your finances accordingly since DA is still in effect.