8th Pay Commission Takes Effect: Salary Hike and DA Boost for Govt Employees

The 8th Central Pay Commission activates from January 2026, revising pay structures for 50 lakh central government employees and 65 lakh pensioners with an expected 14-20% basic pay increase, alongside dearness allowance hikes to offset inflation reaching 5.5%, injecting Rs 2 lakh crore into household spending. States like Haryana are aligning minimum wages for daily-wage workers, stimulating rural demand for MSME goods and services while enhancing public sector purchasing power in consumer durables and local manufacturing.

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