8th Pay Commission: Will PSU Employees Get a 30% Hike? Check New Ministry Guidelines & March 16 Deadline

NEW DELHI | BENGALURU, Feb 17, 2026: For over 1.15 crore central government employees and pensioners, February 2026 has become the most critical month of the decade. As the 7th Pay Commission cycle has officially concluded (Dec 31, 2025), all eyes are now on the 8th Pay Commission (8th CPC) and the first major salary updates of the new year.

1. The 60% DA Milestone: Holi Payout Confirmed?

The latest AICPI-IW data (December 2025) has finalized the Dearness Allowance (DA) for the January–June 2026 cycle.

• The Benefit: DA has officially touched the 60% mark, a 2% increase from the previous 58%.

• The Timeline: While effective from January 1, the Union Cabinet is expected to formally approve the hike in the first week of March 2026.

• The Arrears: Employees will receive a lump-sum payment for January and February arrears along with their March salary—a perfect "Holi Gift."

2. 8th Pay Commission: 30% Salary Hike Projections

The Ministry of Finance and the 8th CPC panel (headed by Justice Ranjana Prakash Desai) are currently reviewing the Fitment Factor, which determines your new basic pay.

• The Projection: Based on current economic indicators, experts suggest a fitment factor between 1.92 and 2.57.

• The Result: A fitment factor of 2.57 could raise the minimum basic pay from ₹18,000 to ₹46,260, effectively a 30-34% hike for most levels.

• Implementation: While the commission has 18 months to submit its report, the benefits will be applied retrospectively from January 1, 2026, meaning massive arrears are building up.

3. CRITICAL DEADLINE: March 16, 2026

The Department of Expenditure has issued a final call for feedback.

• What to do: PSU and Govt employees must submit their suggestions regarding pay parity and allowance revisions via the MyGov survey portal.

• The Cutoff: The window closes on March 16, 2026. This is the only official way to ensure your specific department's concerns are included in the 8th CPC's final report.

8th Pay Commission: Expected Salary Matrix (Feb 2026)