8th Pay Commission Appointed: Salaries, Pensions to Rise; Arrears Expected

• The 8th Pay Commission has been officially appointed with Justice Ranjan Prabha Desai as chairperson, set to revise pay for central government employees and pensioners.
• Over 50 lakh employees and 69 lakh pensioners are expected to benefit; the new structure is anticipated to be effective from January 1, 2026, after the 7th CPC ends Dec 2025.
• Salary and pension increases will depend on the fitment factor; a 2.15x factor could significantly boost basic pay and allowances.
• There is no proposal to merge Dearness Allowance (DA) and Dearness Relief (DR) with basic pay; these will continue to be revised bi-annually based on the AICPI-IW index.
• Implementation is likely by FY 2028, with employees and pensioners expected to receive arrears from January 2026, potentially spanning five quarters.

Why It Matters: 8th Pay Commission appointed; significant pay, pension hikes and arrears expected for millions.