return to news
  1. 8th Pay Commission FAQs: Salary, pension, fitment, timeline; over 20 queries answered

Personal Finance News

8th Pay Commission FAQs: Salary, pension, fitment, timeline; over 20 queries answered

Upstox

7 min read | Updated on May 28, 2025, 10:12 IST

Twitter Page
Linkedin Page
Whatsapp Page

SUMMARY

This article answers over 20 frequently asked questions (FAQs) around the 8th Central Pay Commission (CPC), based on the information that is officially confirmed by the Government and the NC-JCM, the Staff Side representing employees in the pay commission's deliberations.

employee-with-rupees.webp

8th Pay Commission is yet to be set up while employees are having huge expectations from the new pay panel. | Representational image source: Shutterstock

While the formation of the 8th Pay Commission is in process, there is a lot of curiosity among central government employees and pensioners around the expected decisions of the new pay panel.

In this article, we have answered over 20 frequently asked questions around the 8th Central Pay Commission (CPC), based on the information that is officially confirmed by the Government and the NC-JCM, the staff body representing employees in the pay commission's deliberations.

We have also reported these official confirmations from time to time and linked them for reference at suitable places in the following list of FAQs around the 8th Pay Commission. For the ease of understanding, we have kept the answers short and to the point. Let's dive into the 8th CPC FAQs now.

8th Pay Commission: General FAQs

What is the 8th Pay Commission, and why is it important for government employees?

8th Pay Commission is the new pay panel announced by the Central Government for its employees and pensioners. The 8th CPC is important for employees as it will review their current salaries, allowances, and various other perks and recommend changes to help them face current financial challenges.

How does the 8th Pay Commission differ from previous pay commissions?

The 8th Pay Commission is expected to be very different from previous pay commissions. It is being set up at a time when the Indian economy has become the fourth-largest in the world. Moreover, the financial challenges faced by employees have changed vastly in the last 10 years. The new pay panel is expected to provide a means to address these challenges.

However, the exact difference between the 8th CPC and previous pay commissions would be known only when its recommendations are released.

Who will benefit from the 8th Pay Commission recommendations?

All Central Government employees and pensioners, including defence personnel, PSU employees, and All India Service officials etc., are expected to benefit from the 8th Commission. These employees are currently covered by the recommendations of the 7th Pay Commission.

How often are pay commissions formed in India?

Pay commissions for Central Government employees are set up once in 10 years.

What were the key changes introduced in the 6th and 7th Pay Commissions?
The major changes introduced by the 6th and 7th Pay Commission were related to salary. While the 6th CPC introduced running pay bands and grade pay-based salary structure, the 7th CPC introduced a Pay Matrix and a uniform fitment factor topped with an index of rationalisation.
What are the main challenges or concerns regarding the 8th Pay Commission’s implementation?

Currently, no major challenge regarding the 8th Pay Commission’s implementation is known, as it is yet to be set up. Delay in 8th CPC formation and a lack of regular communication regarding the pay panel through official channels may be seen as minor challenges. However, they will be irrelevant once the panel is set up or when it submits its recommendations.

What is the government’s response to demands for merging DA or other interim relief measures?

There is no official response from the government on these demands as the 8th Pay Commission is yet to be formed.

Where can Central Government employees find official updates and notifications about the 8th Pay Commission?
Official updates about the 8th Pay Commission can be found on the websites of the Department of Personnel and Training (DoPT), the Department of Expenditure (DoE) under the Ministry of Finance and the Department of Pension and Pensioners' Welfare (DoPPW).
You can also track the latest 8th CPC-related developments on Upstox.
Who are the key officials or bodies involved in the 8th Pay Commission formation process?

Key official bodies involved in the 8th Pay Commission formation include DoPT, DoE, the Ministry of Finance, and the NC-JCM Staff Side. In the course of its work, the 8th CPC will interact with almost every government body.

8th Pay Commission Timeline and Implementation

When was the 8th Pay Commission approved by the government?
The 8th Pay Commission was approved by the Government in January 2025.
What is the expected implementation date for the 8th Pay Commission?

The expected date of implementation of the 8th Pay Commission is January 1, 2026.

Could the implementation of the 8th Pay Commission be delayed?

The implementation of the 8th Pay Commission is most likely not to be delayed. Although the 8th CPC and the government may take longer than expected to announce the new recommendation. In case of delay in final announcement, the recommendations will be implemented retrospectively from January 1, 2026.

What happens if the implementation is delayed—will the arrears be paid?

Yes, arrears are most likely to be paid in case of a delay in implementation.

What are the major steps taken till now by the 8th Pay Commission?
Till now, the DoPT and the NC-JCM (Staff Side) have held a few meetings to decide the terms of reference of the 8th Pay Commission. The DoE recently also issued vacancy circulars for appointing various officials and support staff of the 8th Pay Commission. However, the names of the commission's chairman and members are yet to be announced.

8th Pay Commission salary and allowances

How much salary hike can central government employees expect under the 8th Pay Commission?

Salary hike under the 8th Pay Commission cannot be predicted. There have been various speculations in the media around the expected fitment factor and salary hike. But it is better to avoid getting influenced by any speculation. More so because the 8th Pay Commission is yet to begin its work.

What is the projected minimum basic pay after the 8th Pay Commission?

The minimum basic pay after the 8th Pay Commission will depend on the revised fitment factor. In the absence of any official confirmation, we cannot predict the projected minimum basic salary. Going by the past trend, however, there should be a substantial increase in the minimum basic salary. For instance, in the 7th CPC, the minimum basic salary was revised from ₹7000 to ₹18,000.

Will Dearness Allowance (DA) be reset after the implementation of the 8th Pay Commission?
It is expected that dearness allowance will be reset after the implementation of the 8th Pay Commission. Like the 7th CPC, the total DA hikes in the last 10 years would likely be merged in the revised fitment factor or salary hike formula to ensure a decent hike in real pay.

8th Pay Commission Fitment Factor

What is the fitment factor, and why is it significant in the pay revision process of the 8th Pay Commission?
The fitment factor is a multiplier recommended by a pay commission to calculate the revised salaries and pensions. You can read more about it here.
What is the expected fitment factor under the 8th Pay Commission?

The expected fitment factor of the 8th Pay Commission cannot be predicted with certainty. Currently, there are a lot of speculations around the expected fitment factor that should be avoided.

Is there any official confirmation on the 8th Pay Commission fitment factor yet?

No. There is no official confirmation on the 8th Pay Commission fitment factor yet. It will be known only after the 8th CPC finishes its work and submits recommendations to the Government, which is most likely to happen in 2026..

8th Pay Commission Pension

How will pensioners be impacted by the 8th Pay Commission?

Like salaried employees, Central Government pensioners and family pensioners will also benefit from any pay hike announced by the 8th Pay Commission. For instance, if the 8th CPC decides to have a uniform fitment factor, then it will apply to pensions as well. Moreover, the 8th CPC is also likely to review and recommend various changes in retirement benefits received by employees on superannuation.

Will there be concerns about disparities between pre- and post-2026 retirees under the 8th Pay Commission?

Concerns about disparities between pre- and post-2026 retirees under the 8th Pay Commission are likely to arise. Such concerns were raised even during the implementation of the 7th Pay Commission. However, it is expected that the 8th CPC will factor in such concerns in its report and suggest remedial measures.

Upstox

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

Next Story