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Delhi, October 29: Central government employees and pensioners are set to benefit from a major pay and pension revision as the PM Narendra Modi-led Union Cabinet approved the Terms of Reference (ToR) for the 8th Central Pay Commission on October 28. The commission will examine and recommend revisions to salaries, allowances, and post-retirement benefits, with the new structure expected to take effect from January 1, 2026. Chaired by former Supreme Court judge Justice Ranjana Prakash Desai, the panel has been given 18 months to submit its report. With this development, many are eager to know how significantly their pay and benefits could change once the recommendations are implemented. The 8th Pay Commission is expected to positively impact around 50 lakh central government employees and 69 lakh pensioners across India. The panel’s assessment will factor in economic conditions, inflation trends, and fiscal discipline to ensure balanced recommendations. Coming nearly a decade after the 7th Pay Commission’s implementation in 2016, this revision represents a crucial move toward aligning compensation with current living costs. Scroll below to find out how much salary and pension hike central government employees and pensioners can expect under the 8th Central Pay Commission. 8th Pay Commission: Government Approves Terms of Reference, 8th CPC To Make Recommendations Within 18 Months. How Much Salary and Pension Are Likely To Increase Under the 8th CPC Central government employees and pensioners are looking at potential salary and pension hikes under the 8th Central Pay Commission, though exact figures are yet to be finalised. According to a report by The Economic Times, the key "fitment factor", which multiplies basic pay and pensions, is likely to fall between 1.83 and 2.46. Meanwhile, a report by Business Standard states the ToR was cleared for the panel to review pay and pensions for nearly one crore employees, with implementation expected from January 1 2026. 8th Pay Commission: How Salary Revision Will Boost Take-Home Pay for Central Government Employees and Pensioners. Based on the Economic Times estimate of the fitment factor, some employees might see salary rises in excess of 30-35%, especially in higher pay grades. As per Hindustan Times, one detailed scenario estimates a monthly salary rise of up to INR 19,000 for certain roles, assuming higher-scale allocation. Pensioners, too, could see a significant boost, ET’s pension-focused analysis suggests the minimum basic pension could increase from INR 9,000 to around INR 25,000 per month under favourable conditions. That said, both publications caution that these numbers are speculative until the commission submits its final recommendations and the Cabinet approves them. Factors like fiscal constraints, state government adoption, and overall economic conditions will influence final hikes. In short, employees and pensioners should prepare for a substantial revision, but exact hikes and timelines remain subject to formal approval.
