Although the 8th Central Pay Commission (CPC) officially came into force as of January 1, 2026, more than one crore Central government employees and pensioners will continue under the 7th CPC structure for the time being.
While the new commission has been set up, the shift to a revised pay structure will take time. The panel needs to review and finalise its recommendations. Until those are implemented, the 7th CPC framework will remain applicable.
8th CPC report by 2027; pay revision to apply from January 2026
The Union government issued the official resolution for the 8th CPC in November 2025 and gave the commission a deadline of 18 months to submit its report. Based on this timeline, changes in salaries and pensions may not be implemented until mid-2027.
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The revised pay and pension structure is expected to be applied retrospectively from January 2026 after the approval takes place.
Since the new pay structure is still under process, employees may get some immediate relief through the biannual Dearness Allowance (DA) increase. According to the latest All India Consumer Price Index for Industrial Workers (AICPI-IW) data, which stayed at 148.2 in December, a 5% DA hike is expected, as reported by Money Control. If approved, this 5 per cent increase will raise the DA from the current 58 per cent to 63 per cent.
The Modi government is likely to make the DA hike announcement in March. Manjeet Singh Patel, president of the All India NPS Employees Federation, said the Centre may announce the DA hike early in March to coincide with the Holi festival. If a 5 per cent DA hike is announced, then employees are likely to receive the hiked DA with their April salary, which will also cover arrears from January 2026.
The 8th CPC timeline and 'fitment factor'
The 8th Pay Commission is currently in the advisory stage. The government has launched a dedicated portal (8cpc.gov.in) to collect feedback from the stakeholders. They have also set a deadline for submissions until March 16.
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One key issue under discussion is the 'fitment factor,' which is the multiplier used to calculate the new basic pay. Employee unions are reportedly demanding a fitment factor between 2.86 and 3.25. The minimum basic salary could increase from ₹18,000 to around ₹58,500 if a factor of 3.25 is approved. However, these figures are only estimates and will be confirmed only after the commission submits its final report.
Arrears and payment schedule
The revised rates are likely to be included in the April 2026 payroll, once the government officially announces the DA hike in March. This payment will also include arrears from January 1, 2026. Regarding the 8th CPC itself, once approved in the future, employees will receive a lump-sum payout of arrears covering the entire gap between January 2026 and the date of notification.
