8th Pay Commission: When will govt employees get a salary hike? Minister answers query

8th Pay Commission announced: The Central government has officially approved the establishment of the 8th Pay Commission. Minister Ashwini Vaishnaw announced this decision made by the Union Cabinet, stating that the recommendations of the pay commission are expected to be presented by the year 2026.

The introduction of the 8th Pay Commission is anticipated to lead to an increase in the salaries of Central government employees, as well as adjustments to the Dearness Allowance (DA). Upon its formation, the 8th Pay Commission will also review the pensions and allowances of retired Central government officials.

Union Minister Ashwini Vaishnaw has announced that the Cabinet has given approval for the 8th Pay Commission for Central government employees. The exact date for its establishment has not been disclosed at this time. The Union minister has indicated that the commission is expected to be set up by the year 2026.

Vaishnaw announced that the chairman and two members will soon be appointed to manage the implementation of the 8th Pay Commission.

"Prime Minister has approved the 8th Central Pay Commission for all employees of Central Government..." Union Minister Ashwini Vaishnaw said during press briefing.

"Ahead of that the government has approved the constitution of the 8th Pay Commission so that recommendations are made in a timely manner and can be implemented from 2026 onwards," added Vaishnaw.

Over 50 lakh central government employees will benefit as they would see revision of their basic pay, allowances, pension, and other benefits. Additionally, approximately 65 lakh pensioners, including those from the defense sector, are set to receive an increase in their pensions. Furthermore, around 4 lakh employees in Delhi, including those from the defense and Delhi government sectors, will also benefit from these changes.

"While the award related to the 8th Pay Commission is unlikely to affect fiscal metrics in FY2026, the potential impact of the same should be built into the new medium term fiscal consolidation path as well as the Finance Commission's recommendations," said Aditi Nayar, Chief Economist, ICRA Ltd.