8th Pay Commission approved: Central government employees may see 186% rise in pension

The 8th Central Pay Commission (CPC), which will come into effect from January 1, 2026, will revise salaries, pensions, and allowances, benefiting more than one crore central government employees and pensioners. It may come with a fitment factor of 2.86, resulting in a significant increase in monthly pensions.

The prevailing 7th CPC, implemented in 2016, had a 2.57 fitment factor, which significantly hiked the basic pay. It also has the minimum basic pension for central government retirees at ₹9,000 per month, while the maximum pension is capped at ₹1,25,000 per month, which is 50% of the highest salary in government service.