The 8th Central Pay Commission was approved on 16 January 2025 and its terms of reference were cleared by the Union Cabinet on 28 October 2025. It is chaired by retired Supreme Court judge Justice Ranjana Prakash Desai and has 18 months from its constitution to submit its report, which puts the likely submission around mid-2027. Its recommendations are expected to apply from 1 January 2026, with arrears. The final fitment factor and pay matrix have not been decided yet.
The 8th Central Pay Commission (8th CPC) will decide the next round of salary, allowance and pension revisions for roughly 50 lakh central government employees and about 69 lakh pensioners, including defence personnel. This page tracks where the commission stands as of September 2026, what it has been asked to examine, and how a fitment factor turns into an actual salary figure. We update it as official notifications come out.
8th Pay Commission at a glance
| Item | Details |
|---|---|
| Approval by Union Cabinet | 16 January 2025 |
| Terms of reference approved | 28 October 2025 |
| Gazette notification | 3 November 2025 |
| Chairperson | Justice Ranjana Prakash Desai (retired judge, Supreme Court of India) |
| Part-time member | Prof. Pulak Ghosh, IIM Bangalore |
| Member-Secretary | Pankaj Jain, IAS |
| Time given for the report | 18 months from constitution (likely around mid-2027) |
| Expected effective date | 1 January 2026, with arrears paid after implementation |
| Official website | 8cpc.gov.in |
Why a new pay commission now
The Centre has set up a pay commission roughly once every ten years since independence. The 7th Pay Commission’s recommendations took effect on 1 January 2016, so the ten-year cycle points to 1 January 2026 for the next revision. A pay commission does not change pay by itself. It studies salaries, allowances, pensions and working conditions, compares them with the private sector and state governments, and sends a report to the Union Government. The Cabinet then decides which recommendations to accept, often with changes, and the Finance Ministry notifies the new pay rules.
What the terms of reference ask the commission to look at
The terms of reference set the boundaries of what the commission can recommend. For the 8th CPC, the government asked it to keep in mind:
- The economic conditions in the country and the need for fiscal prudence.
- The need to keep enough resources for development spending and welfare measures.
- The unfunded cost of non-contributory pension schemes, meaning the older pension system that is paid out of current revenue.
- The likely impact of its recommendations on state government finances, since states usually adopt central pay revisions with some changes.
- The pay, benefits and working conditions available in central public sector undertakings and the private sector.
The commission can also send interim reports on specific issues before its final report if it considers that necessary.
Where the process stands in 2026
After the gazette notification, the commission set up its office at Chandralok Building, Janpath, New Delhi, and launched its website in early 2026. It invited views from the public through an 18-question questionnaire on MyGov, which closed in March 2026, and opened a portal for formal memoranda from ministries, employee federations, pensioner associations and individuals, which ran until 30 April 2026. Staff-side bodies asked for more time. Through the middle of 2026 the commission has been holding consultations with ministries, unions and state governments.
As of September 2026 there is no official announcement on the fitment factor, the new minimum pay or any interim relief. Anything you read that gives a fixed figure is a demand or a projection, not a decision.
What is the fitment factor
The fitment factor is the multiplier used to move an employee’s basic pay from the old pay matrix to the new one. Under the 7th Pay Commission it was 2.57. That number was built from two parts. Dearness allowance stood at 125 percent on 1 January 2016, so pay was first multiplied by 2.25 to absorb that DA into basic pay, and then a real increase of about 14 percent was added on top. That is why the minimum basic pay went from Rs 7,000 to Rs 18,000.
This matters for the 8th CPC because dearness allowance is at 60 percent from January 2026. Merging that alone gives a multiplier of 1.60. Anything above 1.60 is the real increase. The staff side of the National Council (JCM) has asked for a fitment factor of 3.00 and a minimum pay of about Rs 54,000 a month, based on the need-based minimum wage formula. The government has not responded with a number.
How a fitment factor turns into salary
The table below shows what the lowest basic pay of Rs 18,000 (Level 1) would become at different fitment factors. These are illustrations to help you understand the arithmetic. They are not predictions.
| Fitment factor | New basic pay at Level 1 | What it roughly means |
|---|---|---|
| 1.60 | Rs 28,800 | Only today’s 60 percent DA merged, no real increase |
| 1.92 | Rs 34,560 | DA merged plus a modest real increase |
| 2.28 | Rs 41,040 | A larger increase, similar in spirit to earlier commissions |
| 2.57 | Rs 46,260 | Same multiplier as the 7th CPC |
| 3.00 | Rs 54,000 | Staff-side demand |
Keep in mind that take-home pay does not jump by the full multiplier. When the new pay matrix begins, dearness allowance resets to zero and starts building up again, and house rent allowance and other allowances are recalculated on the new basic pay. Your gross salary increase is therefore smaller than the change in basic pay suggests.
Worked example for a mid-level employee
Take an employee at Level 6 with a basic pay of Rs 35,400 today. With 60 percent DA, the DA component is Rs 21,240, so basic plus DA is Rs 56,640. If the fitment factor were 2.00, the new basic pay would be Rs 70,800 and DA would restart at zero. Basic plus DA would rise from Rs 56,640 to Rs 70,800, an increase of about 25 percent, before any change in HRA and transport allowance. That example shows why employee unions focus so much on the real increase above the DA-neutral multiplier.
What changes for pensioners
Pension is revised by applying the fitment factor to the basic pension, and dearness relief resets in the same way as DA. The 8th CPC also has to consider the cost of the old non-contributory pension scheme. Employees under the National Pension System and the Unified Pension Scheme, which was introduced from 1 April 2025, will watch closely for any recommendations on contribution rates and the assured payout.
When will employees get the money
Past commissions give a guide. The 7th CPC was set up in February 2014, submitted its report in November 2015, and the Cabinet approved it in June 2016, with arrears paid from January 2016. If the 8th CPC follows a similar path, the report could reach the government around mid-2027, the Cabinet decision could come some months later, and arrears from 1 January 2026 would be paid after that. Treat this as a rough timeline, not a promise.
Previous pay commissions compared
| Commission | Effective from | Minimum basic pay | Fitment factor |
|---|---|---|---|
| 6th CPC | 1 January 2006 | Rs 7,000 (pay plus grade pay) | 1.86 |
| 7th CPC | 1 January 2016 | Rs 18,000 | 2.57 |
| 8th CPC | 1 January 2026 (expected) | To be decided | To be decided |
How to keep track reliably
Follow the commission’s own website, the Department of Expenditure under the Ministry of Finance, and Press Information Bureau releases. Be careful with social media posts that quote exact salary figures or dates. Until the report is submitted and the Cabinet decides, no figure is final.
Sources
- Cabinet decision on the terms of reference, Press Information Bureau and pmindia.gov.in, October 2025
- 8th Central Pay Commission website, 8cpc.gov.in
- Department of Expenditure, Ministry of Finance, Office Memoranda on dearness allowance
- Report of the 7th Central Pay Commission, 2015
Last updated: 23 September 2026.
Frequently asked questions
Who is the chairperson of the 8th Pay Commission?
Justice Ranjana Prakash Desai, a retired judge of the Supreme Court of India, chairs the 8th Central Pay Commission. Prof. Pulak Ghosh of IIM Bangalore is a part-time member and Pankaj Jain, IAS, is the Member-Secretary.
When will the 8th Pay Commission be implemented?
Its recommendations are expected to apply from 1 January 2026. The commission has 18 months from its constitution to report, so the report is likely around mid-2027, and arrears from January 2026 would be paid once the Cabinet approves it.
What will be the fitment factor in the 8th Pay Commission?
It has not been decided. The staff side of the National Council (JCM) has demanded 3.00. Because DA is at 60 percent in 2026, a factor of 1.60 would only merge DA, and anything above that is the real increase.
What will be the minimum salary under the 8th Pay Commission?
No official figure exists yet. The current minimum basic pay is Rs 18,000. Employee unions have asked for about Rs 54,000, which corresponds to a 3.00 fitment factor.
Will DA become zero after the 8th Pay Commission?
Yes, in the usual practice. When the new pay matrix starts, accumulated dearness allowance is merged into basic pay through the fitment factor and DA restarts from zero, then rises twice a year again.