8th Pay Commission: When will next salary hike come? How much arrears central govt employees may get

8th Pay Commission: Prime Minister Narendra Modi-led Union Cabinet has recently approved the Terms of Reference of 8th Central Pay Commission (CPC). Moreover, the Government has also formed and notified the new CPC. The recommendations made by the Commission will cover nearly 50 Lakh Central Government employees including Defence Services Personnel and almost 69 lakh Pensioners.

In January 2025, the Central Government announced the formation of the 8th CPC to review and recommend revisions to the salaries and other benefits of Central Government employees. The 8th Central Pay Commission will function as a temporary body, consisting of a Chairperson, one Part-Time Member and a Member-Secretary, said Finance Ministry.

Timeline of new Pay Commission

In January 2025, the Central Government had announced formation of the 8th Central Pay Commission (8th CPC) to examine and recommend changes in Salaries and other benefits of Central Government employees. Now, the ToR is approved by the Central Government. The Government has said that the 8th Pay Commission will make its recommendations within 18 months.

The 7th Pay Commission's recommendations were approved within 6 months, which came in effect from January 1, 2016. If we consider the same timeline, the 8th Pay Commission likely to be implemented around 24 months from now.

The provisions of the 8th Central Pay Commission are expected to come into force from January 1, 2026, following the conclusion of the 7th Pay Commission’s tenure. "Usually, the recommendations of the pay commissions are implemented after a gap of every ten years. Going by this trend, the effect of the 8th Central Pay Commission recommendations would normally be expected from 01.01.2026," the government had said.

Arrears for Central Government employees

Employees and pensioners will be paid arrears for the period between the effective date and the actual implementation. For example, if the recommendations are implemented in May 2027, arrears will apply from January 2026 to April 2027.

The arrears will reflect the difference between the existing and revised pay. For instance, if salary increases from Rs 60,000 to Rs 65,000, the monthly gap is Rs 5,000, amounting to Rs 75,000 over a 15-month delay.

Current salary for Central Government employees

Currently, Central Government employees and pensioners are paid under the 7th Pay Commission. As of now, the minimum basic pay for central government employees is Rs 18,000, while pensioners receive a minimum basic pension of Rs 9,000. Meanwhile, the maximum basic salary under 7th Pay Commission is Rs 2,25,000, while apex positions like the Cabinet Secretary and others receive Rs 2,50,000 per month. Under 7 CPC, fitment was set at 2.57. Additionally, they get DA/DR at 58 per cent rate.