The new year has started on a disappointing note for lakhs of Central government employees and pensioners who were expecting a salary and pension revision under the 8th Central Pay Commission (CPC) from January 1, 2026. Despite earlier expectations, no increase has been implemented so far, raising questions about the delay and the likely timeline for a pay hike.
What has the government finalised so far?
The Centre has approved the constitution of the 8th Central Pay Commission. The panel is headed by retired Justice Ranjana Prakash Desai. Senior IAS officer Pankaj Jain (1990 batch) has been appointed as the Member-Secretary, while Professor Pulak Ghosh of IIM Bangalore will serve as a part-time member. Although the commission has been formally set up, its recommendations on revised pay and pension structures are yet to be submitted and approved.
Why hasn’t the salary increased from January 1, 2026?
While pay commissions are typically implemented every ten years and the 8th CPC was expected to take effect from January 1, 2026, the revision depends on the submission of the commission’s report and subsequent approval by the government. Since the report has not yet been presented, the revised pay structure cannot be enforced, resulting in no salary hike at the start of the year.
Will employees and pensioners receive arrears?
Yes. As per established government practice, once the revised pay scales are notified, arrears are expected to be calculated retrospectively from January 1, 2026. This means employees and pensioners are likely to receive pending dues for the period between the effective date and the actual implementation.
How much salary increase is expected?
Economists and policy experts believe the hike could be significant. Some estimates suggest that the minimum monthly salary could rise from the current ₹18,000 to around ₹50,000. There is also speculation that the highest salary bracket may go up to nearly ₹1 crore annually (gross), bringing government pay closer to private-sector compensation levels.
When is the pay hike likely to be implemented?
No official timeline has been announced yet by either the government or the Pay Commission. However, experts believe the Centre may try to implement the revised pay structure without prolonged delays to avoid complications related to arrears and allowances, as seen in earlier pay commission cycles. Employees and pensioners are now awaiting the commission’s report and the government’s final approval.