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Central government employees are eagerly waiting for the 8th Pay Commission to be implemented. Everyone is hoping that it will bring a big increase in their salaries. Now a new report has come out that answers some important questions like when the 8th Pay Commission might be rolled out and how much salary hike can be expected. According to a report in Kotak Institutional Equities the 8th Pay Commission may be implemented by the end of 2026 or early 2027. Right now the government is still working on setting the terms of reference which means deciding the rules and responsibilities of the commission. The commission itself hasn’t been formed yet and the name of the chairperson (head of the commission) has also not been announced. However it is expected that the government may make an announcement about this soon. How much can the salary increase? Under the 8th Pay Commission a big salary hike is expected for central government employees. According to the report: The basic salary may increase by 30 per cent to 34 per cent. The minimum basic pay which is currently Rs. 18000 could go up to around Rs. 30000. The fitment factor (used to calculate revised salaries) is expected to be 1.8 which will give employees a real benefit of around 13 per cent in take-home pay. How will 8th Pay Commission impact the governments expenses? The 8th Pay Commission may have an impact of 0.6 per cent to 0.8 per cent on India’s GDP. The government may have to bear an additional burden of Rs. 2.4 to Rs. 3.2 lakh crore due to salary increases. As salaries go up spending power of employees will rise which will lead to higher demand in sectors like automobiles consumer goods and other daily-use items. What about savings and investments? There could be an additional increase of Rs. 1 to Rs.1.5 lakh crore in savings especially in stocks fixed deposits and other investment options. The salary hike will benefit around 33 lakh government employees and a large number of pensioners. Among them Grade C employees (lower salary bracket) are expected to benefit the most.