• Source:JND
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8th Pay Commission News: Millions of central government employees could soon benefit as the long-awaited 8th Pay Commission’s recommendations are likely to be implemented from January 1, 2026. This update could include arrears amounting to 17 months, providing a major financial relief for the central government staff, Live Hindustan reported.

8th Pay Commission: When Will It Be Constituted And What Does It Mean

According to reports, the 7th Pay Commission tenure ends on December 31, 2025. Typically, it takes 18 to 24 months for a pay commission to draft its report, followed by an additional 3 to 9 months for government review and approval before its implementation.

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For example, the 7th Pay Commission was formed in February 2014, submitted its report in November 2015, and its recommendations were implemented starting January 1, 2016.

If the 8th Pay Commission follows a similar timeline, its report may be finalised by April 2027. However, if the government decides to implement the recommendations retrospectively from January 1, 2026, central government employees could receive arrears covering approximately 17 months, providing a significant financial relief.

Employees Await Clarity As Formation Of 8th Pay Panel Stalls

Earlier in January 2025, the Central government announced plans to constitute the 8th Pay Commission. However, nearly ten months later, no formal notification or formal formation has taken place. The delay has left the employees uncertain about whether the commission will be constituted and when its recommendations might be implemented.

Kotak’s Estimates On Salary And Fiscal Impact

An analysis by Kotak Institutional Equities suggests that the minimum basic salary under the 8th Pay Commission could increase from Rs 18,000 to approximately Rs 30,000.

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Key Highlights From The Report Include:

- Fitment factor: Around 1.8 times

- Effective salary hike: Approximately 13%

- Fiscal impact: Estimated to add 0.6–0.8% to the GDP

- Projected government expenditure: Between Rs 2.4 and 3.2 lakh crore

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