Pensioners and employees of the central government were expecting Finance Minister Nirmala Sitharaman to include money for salary and pension revisions in the Union Budget 2025 and to announce plans for the 8th Pay Commission.
Since the Modi government announced the 8th Pay Commission last month and said panel members would be appointed shortly, expectations were high.

8th Pay Commission Not Likely To Be Implemented on January 1, 2026?
By early next year, the panel, which will have two members and a chairman, is anticipated to present its recommendations to the government.
Since the current 7th Pay Commission’s term ends on December 31, 2025, there has been conjecture that the new pay panel will take office on January 1, 2026.
The government will probably include these costs in the 2026–2027 budget since the finance minister’s budget speech made no reference to the 8th Pay Commission and made no financial provisions for its implementation.
According to reports, the new pay panel might not complete its recommendations for the 8th Pay Commission for at least another year.
According to a report, Expenditure Secretary Manoj Govil said that since the pay panel’s report is anticipated to take at least a year to complete and approve, no 8th Pay Commission expenses are included in the Union Budget 2025–2026.
Finance Ministry Consulting Department of Personnel and Training, the Ministry of Defense, and the Ministry of Home Affairs
Regarding the commission’s terms of reference, which need to be formally approved before the panel can start working, the finance ministry has asked the Department of Personnel and Training, the Ministry of Defense, and the Ministry of Home Affairs for their opinions.
Pay commissions typically take more than a year to make recommendations. For instance, it took the 7th Pay Commission over 18 months to complete and submit its report.
Employees of the central government can anticipate the recommendations of the 8th Pay Commission in the upcoming fiscal year, given the official statements and the lack of any reference in Budget 2025.
The 8th Pay Commission’s recommendations—particularly the fitment factor used to revise salaries and pensions—will determine the implementation’s financial burden.
For increases in salaries and pensions, the government is anticipated to take into account a fitment factor of 1.92 to 2.86.
The minimum base pay for a government employee would increase from ₹18,000 to ₹51,480 if a 2.86 fitment factor is applied.
Pensions would also rise from 9,000 to 25,740 naira.
The fitment factor is multiplied by the previous minimum amount to determine salary and pension increases.