8th Pay Commission In a major development, the Union Cabinet has approved the Terms of Reference (ToR) for the 8th Pay Commission, paving the way for another round of salary revisions for central government employees and pensioners.
The Commission, expected to submit its recommendations by mid-2026, will determine revised pay scales, allowances, and pension structures for nearly one crore government employees and retirees across India.
Officials indicated that the 8th Pay Commission’s mandate includes addressing inflation, cost of living, and the economic realities post-pandemic. The last such revision, under the 7th Pay Commission, came into effect in 2016, increasing pay by about 23.55%.
With this approval, employees are hopeful that the fitment factor—a key formula that decides the extent of pay hike—will be revised from the current 2.57 times to around 3.68 times, which could significantly increase monthly salaries.
Experts say the decision will not only boost consumer spending but could also give a positive push to the Indian economy in the coming fiscal year.
