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8th Pay Commission Gets Govt Nod: What It Means for Employees, All You Need to Know

The commission will review pay and pensions affecting over 49 lakh employees and 65 lakh pensioners, with a proposed 30-34% increase, targeting implementation from 2026.

  • Cabinet cleared the ToR for the 8th Central Pay Commission, which could lead to a potential 30–34% hike affecting over 49 lakh employees and 65 lakh pensioners, effective from Tuesday.
  • The government said the commission will consider parity, fairness, fiscal balance, CPSU and private-sector pay, and unfunded pension costs after consultations with ministries, state governments, and Joint Consultative Machinery staff side since January this year.
  • The commission will be chaired by Justice Ranjana Prakash Desai with IIM Bangalore Professor Pulak Ghosh and Petroleum Secretary Pankaj Jain, and must submit interim and final reports within 18 months; fitment factor scenarios include 2.86, 2.57, and a conservative 1.92 estimate.
  • Budget estimates show the Central government faces an outgo of over Rs 7 lakh crore in 2025-26, about 18% of revenue expenditure, while the 7th Central Pay Commission added Rs 1.02 lakh crore annually, affecting state governments too.
  • Historically, pay commissions are implemented every ten years, and previous Central Pay Commissions were applied retrospectively from January 1, 2016, while allowances are likely revised prospectively.
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18 Articles

The Central Government has approved the terms and reference of the 8th Pay Commission; the new pay commission will be implemented from January 1, 2026. 8th Pay Commission News (Aaj Samaj), Business Desk: The Union Cabinet on Tuesday approved the terms and reference of the 8th Pay Commission. It is believed that pensioners could receive significant benefits based on the recommendations of the 8th Pay Commission. Currently, full pension is awarded…

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NEWS9 LIVE broke the news in on Tuesday, October 28, 2025.
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