8th Pay Commission on 18-Month Timeline With Unions Seeking Jan 2026 Effect

Overview

• The commission was formally notified on November 3, 2024, with a mandate to submit its report within 18 months, after which a Group of Ministers and the Union Cabinet will decide on implementation.
• Employee unions say the Terms of Reference do not specify a start date and have asked the government to make revised pay effective from January 1, 2026 with arrears.
• The finance ministry has stated there is no proposal to merge dearness allowance or dearness relief with basic pay, and DA/DR will continue to be revised every six months.
• Most early estimates point to a 20–35% pay increase, while Ambit Capital’s fitment-factor scenarios of 1.83–2.46 imply a minimum salary range of roughly Rs 32,940 to Rs 44,280, with larger jumps seen as fiscally difficult.
• Until approvals are completed, employees will continue under the 7th Pay Commission framework, and the eventual rollout is expected to cover over 50 lakh staff and more than 65 lakh pensioners.