8th Pay Commission News: The road to a significant pay hike for over 1.1 crore central government employees and pensioners has officially opened as the 8th Pay Commission transition begins this January 2026. While the new pay scales are expected to be effective retrospectively from January 1, 2026, latest inflation data (AICPI-IW) has already triggered a fresh Dearness Allowance (DA) hike, projected to reach at least 60%. Although the formal implementation of the Commission's recommendations may take up to 18 months, employees are set to receive substantial financial gains through accumulated arrears once the final report is approved.
Expected Hike in Dearness Allowance (DA) for Central Government Employees
There's a key update regarding the Dearness Allowance (DA) for central government employees. In November, the Consumer Price Index for Industrial Workers (AICPI-IW) rose by 0.5 points, reaching 148.2. This marks the fifth consecutive monthly increase in the index.
Based on current figures, the DA has now reached 59.93%, indicating that the January 2026 hike could push it to 60%, up from 58% last year. If December's index also rises, employees can expect a significant increase in their salaries.
However, the final decision rests with the government, so it's too early to confirm whether the hike will be 2% or 3%.
How Are DA and DR Hikes Decided?
Many wonder how the government calculates Dearness Allowance (DA) and Dearness Relief (DR). Simply put, the government reviews inflation data every six months to determine the DA for employees and DR for pensioners.
The current figures reflect inflation from July to November. The data for December will be the final piece used to calculate the revised rates effective from January. If the inflation trend continues, employees and pensioners can expect increased support from the government in the first half of the new year to help offset rising living costs.
8th Pay Commission Updates
The 8th Pay Commission, approved by the government in November 2025 and headed by retired Justice Ranjana Prakash Desai, is expected to submit its recommendations in about 18 months. However, the revised pay will be effective from January 1, 2026, ensuring that employees receive full arrears even if there's a delay in implementation.
Expected Salary and Pension Hike Under 8th Pay Commission
With the 8th Pay Commission, the minimum basic salary of central government employees may rise from ₹18,000 to ₹26,000. Pensioners, too, can expect a boost, with the minimum pension likely increasing to ₹20,500. HRA, travel, and medical allowances may also be revised, leading to a substantial rise in in-hand income.
Fitment Factor Hike and Arrears Likely Under 8th Pay Commission
Employee bodies are pushing for a higher fitment factor, possibly between 2.28 and 3.0, which could result in a record salary hike. With the 7th Pay Commission ending on December 31, 2025, the new pay scale takes effect from January 1, 2026. Employees may also receive significant arrears in case of implementation delays.
