The government said that DA and other retirement benefits will continue unless an employee is dismissed for serious indiscipline. The changes to the CCS pension rules apply only to such cases.
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8th Pay Commission: Central government employees and pensioners are increasingly curious about the 8th Pay Commission. Approved by the Prime Minister Narendra Modi-led government, the commission is expected to be implemented on January 1, 2026. Under this plan, changes will be made to the salaries, pensions, and allowances of central government employees and retired personnel. The most debated issues are regarding salary increases and the fitment factor. It is believed that the new pay commission will directly impact the incomes of millions of families.
What are the details?
According to media reports, if the fitment factor is set at a higher level, the current minimum basic salary of ₹18,000 could increase to approximately ₹51,480. However, the government has not yet made any official announcement on the percentage of salary increase. According to a Mint report, there are approximately 5 million central government employees (including defense personnel) and approximately 6.5 million pensioners in the country who will benefit from the 8th Pay Commission. The government constitutes a Pay Commission every 10 years to review employees’ salaries and pensions.
Government Clarifies on DA
Meanwhile, the government has also clarified rumors circulating regarding dearness allowance (DA). On December 13, 2025, the government clarified on social media that the claim that pensioners will not receive DA after the new Finance Act 2025 is false. The government stated that DA and other retirement benefits will continue unless an employee is dismissed for serious indiscipline. The change in CCS pension rules applies only to such cases.
Analyst Opinion on the Fitment Factor
Regarding the fitment factor, analysts believe that the government will take into account inflation, salary declines, and the government’s financial situation. Initial estimates suggest that the fitment factor could be between 1.83 and 2.57. According to tax expert CA Chandni Anandan, no final figure has been finalized yet. It’s worth noting that the fitment factor in the 7th Pay Commission was also 2.57, but this doesn’t necessarily mean that salaries will increase by the same amount. The final decision will be clear only after the commission’s report is released.
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