The Union Cabinet approved the 8th Pay Commission, effective Jan 1, 2026, bringing salary, pension, and allowance hikes for central govt employees and pensioners. Dearness Allowance will be adjusted for inflation. While exact hike percentages are awaited, basic salaries could rise from ₹18,000 to ₹51,480, benefiting over 50 lakh employees and 65 lakh pensioners.