8th Pay Commission Latest Update: Bad news for central employees! Delay in formation of 8th Pay Commission, salary likely to increase in 2027. Know why the fitment factor is likely to be 1.92 and what will happen to the arrears.
8th Pay Commission: There is bad news for lakhs of central government employees and pensioners who are dreaming of a big increase in their salary from the 8th Pay Commission. It was expected that the new salary (Salary Revision) would be implemented from January 1, 2026. But, the indications that are being received now show that the wait of the employees is going to be longer. There is a possibility of a lot of delay in the process from the formation of the Pay Commission to its implementation, which has increased the concern among the employees. The commission has not been constituted by the government yet nor has the TOR (Terms of Reference) been finalized. It has become clear from this that the delay in the process of increase in salary is certain. Let us know what is the reason for this delay and what effect it will have on your salary.
Why the delay in the formation of Pay Commission? (Why 8th CPC Formation Delayed?)
The biggest reason for the delay in the formation of the 8th Pay Commission is the non-finalization of its ‘Terms of Reference’ (TOR). TOR is the foundation on which the entire building of the Pay Commission stands. It decides on which issues the commission will give its recommendations to the government, what will be the scope of its recommendations and how much time it will get to submit the report. According to sources, this time the process of preparing the TOR is taking a lot of time. Till the time the government does not finalize the TOR, neither the commission can be formally constituted nor can it start its work.
Salary Revision Postponed till 2027
The delay in formation will have a direct impact on the implementation of the recommendations. Looking at the current situation, it is being estimated that-
1. Formation of the Commission
If the process is not expedited, the commission may be formed by the end of 2025.
2. Time to prepare the report
Once formed, the commission will take at least 15 months to prepare a detailed report by consulting employee organizations, ministries and experts across the country.
3. When will the recommendations come
According to this, the final report of the 8th Pay Commission can be submitted to the government only by the beginning of 2027.
4. When will it be implemented
After the report comes, the government will pass it in the cabinet and then a notification will be issued to implement it. Looking at this entire process, the increased salary is likely to come in the hands of the employees only in 2027.
Fitment Factor: Expectations of 3.68 dashed
The fitment factor decides how much the salary will increase. This is the number by which your basic salary is multiplied. In the 7th Pay Commission, it was 2.57 times. Employee organizations have been demanding to increase it to 3.68 times for a long time. But the information that is coming out now is shocking. Sources say that the fitment factor is most likely to be 1.92 in the 8th Pay Commission. The government is not in the mood to make any major changes in it. If the fitment factor remains 1.92, it will be a big setback for the employees as it will not lead to the expected increase in salary.
Will there be arrears from January 1, 2026?
This is a big question that if the salary increases in 2027, will the employees suffer? There can be a relief here. Even if the government implements the recommendations in 2027, it can consider it effective from January 1, 2026. This has happened before. If the government considers the 8th Pay Commission effective from January 1, 2026, then the employees can get arrears for the entire period. This means that from January 2026 till the new salary is implemented, all the money of the increased salary will come in your account in one lump sum. However, the final decision on this will depend on the intention of the government and the recommendations of the commission.
The matter is stuck due to non-formation of TOR
It is necessary to make TOR (Terms of Reference) before the formation of 8th Pay Commission. Employee organizations are angry with the delay in the formation of the Pay Commission. They are constantly pressurizing the government to finalize the TOR as soon as possible and form the commission. Their demand is that the recommendations should be implemented from January 1, 2026 in any case and in case of delay, full arrears should be given without any deduction. Actually, TOR itself sets the framework of the commission. Without TOR, the recommendations of the commission cannot start. According to sources, at present the draft of TOR is being deliberated and it has not been finalized.
What is the future possibility?
The government’s stand is not clear at the moment, but according to sources, the formation of the commission is possible by the second half or end of 2025. In such a situation, employees should not expect a salary hike before 2027.
When can the report be prepared now?
| Phase | Estimated Time Frame |
|---|---|
| Constitution of the Commission | By the end of 2025 |
| Term for preparing recommendations | At least 15 months |
| Present possible recommendations | March-April 2027 |
| Effective Date | 1 January 2026 (Expected) |
