Central staff, pensioners may get around 25% hike in salaries and pensions
19 Jan 2025

The union cabinet has approved the setting up of the 8th Pay Commission for central government employees and pensioners that would potentially effect a 25 per cent increase in their salaries and pensions, respectively, beginning 1 January 2026.
Centre revises salaries and pensions of employees and pensioners, including ex-service personnel, every 10 years. The previous revision came into effect on 1 January 2016 and another revision is due on 1 January 2026.
The pay revision will benefit around 5 million central government employees and over 6.5 million pensioners.
Salaries and pensions are revised to address the changing economic circumstances, including the effects of inflation, so as to ensure these are in terms with real life situations.
The estimated increase in salary is based on the recommendations of the previous Pay Commissions. The 7th Pay Commission had recommended a fitment factor of 2.57 in deciding new pay scales, which resulted in an average salary hike of 23.55 per cent. The 6th Pay Commission had recommended a fitment factor of 1.86.
Analysts expect the 8th Pay Commission too recommend a fitment factor of up to a maximum 2.85, which could potentially result in a 25-30 per cent increase in salaries and pensions. They also see the basic minimum pay, including perks and allowances, to be more than Rs40,000.
The government has not so far constituted the Pay Commission, which normally has a chairman and two members. The commission will hold wide consultations with the central and state governments, central public sector undertakings and other stakeholders before finalising its recommendations.
Meanwhile, central government employees are also demanding payment of arrears of dearness allowance withheld for an 18-month period during the COVID-19 pandemic. Da is revised evert 6 months in January and July.
The National Council Joint Consultative Machinery (NC JCM), representing the central government employees in the country, is reported to have requested finance minister Nirmala Sitharaman seeking release of the DA arrears.