Overview

• The government approved the 8th Pay Commission in January 2025 but has yet to name its chair or finalize its mandate by mid-July.
• Analysts at Ambit Capital and others forecast a 30–34 percent increase for over 11 million central employees and pensioners based on a fitment factor of 1.83–2.46.
• Recommendations were originally slated for a January 2026 rollout but are now expected by year-end 2025 with implementation in FY2026–27.
• The salary and pension revision carries an estimated annual cost of Rs 1.3–1.8 lakh crore and could boost GDP by up to 50 basis points.
• Central government employee unions and pensioner groups are urging accelerated appointments to prevent mounting arrears and morale erosion.