December 2025 feels different if you’re a central government employee or pensioner. There’s a quiet question floating around offices and WhatsApp groups. What happens to our salary now? The reason is simple. The 7th Pay Commission officially ends on December 31, 2025, and the spotlight has shifted to the 8th Pay Commission.
This isn’t speculation anymore. The government has already constituted the 8th Pay Commission, and its Terms of Reference were approved in November 2025. That alone makes this transition more real than ever.
Where Dearness Allowance Stands Right Now
Let’s start with what’s already in your payslip. As of late 2025, Dearness Allowance stands at 58 percent. This came after two hikes during the year, 2 percent from January and another 3 percent from July.
For more than 50 lakh employees and around 69 lakh pensioners, this DA increase has helped soften the blow of rising prices. But DA only adjusts for inflation. It doesn’t change the basic pay structure. That’s where a new pay commission matters.
What We Know About the 8th Pay Commission So Far
The 8th Pay Commission is chaired by Justice Ranjan Prabha Desai. It has been given around 18 months to study pay, allowances, and pensions before submitting its report.
One key relief is that pensions are clearly within its scope. Earlier, there were concerns that pension revisions might be treated separately. For retirees, this confirmation matters just as much as salary hikes matter to serving employees.
Expected Salary Hike: What Experts Are Saying
Now comes the part everyone is curious about. How much could salaries increase?
Most projections depend on two things. The fitment factor and how much Dearness Allowance gets merged into basic pay. By early 2026, DA is expected to touch around 60 to 70 percent, making a merger likely.
In conservative scenarios, the overall hike may be around 20 to 25 percent. Moderate estimates place it closer to 25 to 30 percent. In a more optimistic case, hikes could reach 30 to 35 percent.
One thing worth noting. Higher fitment factors usually benefit lower pay levels more. So junior staff may see a stronger relative jump than senior officers.
Timeline: When Will You Actually See the Money
Here’s the honest part. Nothing changes immediately.
While revisions may apply notionally from January 1, 2026, actual payments are unlikely before late 2027 or even 2028. The commission is expected to submit its report around mid-2027, followed by approvals and implementation planning.
What This Means for You Right Now
In 2025, there are no major salary changes beyond DA hikes. But the groundwork for the next big revision is firmly in place.
If you’re planning finances, stay cautious and informed. Follow official updates from the DoPT and the Finance Ministry. The 8th Pay Commission is coming, but patience will be part of the process.
Frequently Asked Questions
Has the 7th Pay Commission officially ended?
Yes. The 7th Pay Commission tenure ends on December 31, 2025. After this date, pay revisions will depend on recommendations from the 8th Pay Commission, although existing pay and DA continue until new rules are implemented.
When will the 8th Pay Commission salary hike be implemented?
Salary revisions may apply notionally from January 1, 2026, but actual payments are expected only after government approval. Most estimates suggest employees may see revised salaries and arrears sometime in late 2027 or 2028.
Will pensioners benefit from the 8th Pay Commission?
Yes. Pensions are included in the 8th Pay Commission’s scope. Pensioners can expect revised pension calculations once recommendations are approved, similar to previous pay commission cycles.