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On 8 December 2025, MoS Finance Pankaj Chaudhary informed Lok Sabha that the upcoming 8th Central Pay Commission will cover 50.14 lakh serving central government employees and nearly 69 lakh pensioners. The Terms of Reference were notified on 3 Nov 2025; the commission has 18 months to submit recommendations on pay, allowances, pension and fitment factor. Implementation date and 2026-27 budget all
The 8th Pay Commission, chaired by Justice (Retd) Ranjana Desai, has begun reviewing salaries and pensions for over 50 lakh central government employees and 65 lakh pensioners. Experts predict the crucial fitment factor will range between 1.83 and 2.46, pushing the minimum basic pay from ₹18,000 to ₹32,940–₹44,280.
The implementation of the 8th Pay Commission will bring a significant salary hike for government employees, but it will also lead to a higher tax burden. Central employees have reason to celebrate as their salaries are set to increase once the new pay commission comes into effect. At the same time, higher earnings will mean an increase in the taxes they need to pay. It’s important to understand ho
