The 8th Pay Commission, approved by the Union Cabinet, is set to be effective from January 1, 2026, impacting approximately 50 lakh central government employees and 65 lakh pensioners. This commission will revise salaries, pensions, and allowances, including adjusting Dearness Allowance for inflation. Experts suggest the government will consider economic inflation, wage erosion, and fiscal capacity. Early projections indicate a fitment factor of 2.57, potentially increasing central government salaries and pensions for about 1 crore individuals. Retirement benefits will only be forfeited if an employee is dismissed for misconduct.