8th Pay Commission 2025: Salary Hike, Pension Increase & Latest Updates
The Government of India is getting set for the 8th Pay Commission (8th CPC). This will help decide the new pay for over 50 lakh central employees and over 70 lakh people who get pensions.
Here, you can read about changes in salaries, more money for people who get pensions, and the latest news you should know.
1. 8th Pay Commission 2025 – Latest Status
The Union Cabinet said yes to starting the 8th Pay Commission in January 2025. The official notice and Terms of Reference are not out yet. The commission is likely to give its report by the middle of 2026. The new pay will begin from 1 January 2026.
2. Expected Salary Hike – Fitment Factor Details
The fitment factor tells you how much more you may get for your basic pay.
In the 7th CPC, the fitment factor was 2.57 times your basic pay.
In the 8th CPC, many say it could be between 1.83 times and 2.86 times your basic pay.
Here’s a quick salary comparison:
| Current Basic Pay | Expected New Basic (8th CPC) | Hike % |
|---|---|---|
| ₹18,000 | ₹33,000 – ₹45,000 | 80% – 150% |
| ₹35,400 | ₹64,000 – ₹85,000 | 80% – 130% |
| ₹56,100 | ₹1.05 lakh – ₹1.25 lakh | 85% – 120% |
In short, people should get a 30% to 40% overall raise after the 8th Pay Commission starts.
3. Pension Hike and Unified Pension Scheme
The money that retired workers get every month will go up, since it depends on the last pay they got.
At this time, the lowest amount is ₹9,000. This could increase to about ₹18,000–₹20,000.
Also, starting from 1 April 2025, the government’s Unified Pension Scheme (UPS) will make it so workers who have been in their job for at least 25 years will get a steady 50% of their last pay as money each month.
4. Dearness Allowance (DA) Reset & Allowance Changes
When the 8th CPC comes in, the Dearness Allowance goes back to 0%.
The DA you have now will be included in the new basic pay. After that, new DA rises will start at zero.
Some small allowances may be added, changed, or removed to keep things easy.
5. Implementation Timeline
| Stage | Expected Timeframe |
|---|---|
| Cabinet approval for formation | January 2025 |
| Commission formation | Late 2025 |
| Report submission | Mid 2026 |
| Implementation (with arrears) | 1 January 2026 (rollout may happen in 2027) |
6. Summary of Key Points
- Fitment Factor: It might be from 1.8x to 2.5x.
- Salary Hike: It could be around 30% to 45%.
- Minimum Pay: It may go up from ₹18,000 to be ₹33,000 or ₹40,000.
- Pension: Many people can get twice as much.
- DA Reset: It will be 0% after it starts.
- Start Date: The new plan may start on 1 January 2026.
7. Conclusion
The 8th Pay Commission 2025 will bring some big changes for central workers and people who get a pension.
The pay and pension could go up by a good amount, but the final word is not out yet.
For real news, check for updates from the Ministry of Finance and the Press Information Bureau (PIB).