8th pay commission:A big news has come out for central government employees and pensioners. According to the latest report by Ambit Capital, the 8th Pay Commission (8th Pay Commission) may be implemented in FY 2026-27 (FY27), which is expected to increase the salary and pension of government employees and pensioners by 30-34%.

This change will benefit around 1.12 crore people, which will not only affect their pockets, but will also promote the market consumption. Come, let’s understand this news more closely what it matters to you and which areas will affect you.

Which sectors will benefit?

The report of Ambit Capital states that many sectors can see a boom with the implementation of the 8th Pay Commission. It will directly benefit areas such as passenger vehicles (vehicles), banking and financial services (BFSI), fast -selling goods (FMCG), and fast food chains (QSR).

However, the scope of this benefit will depend on how much salary increases, what is the fitment factor, and when the commission applies. If it is delayed, the employees can get more money in the form of arrears, which will increase the ability to spend lump sum and will strengthen demand in the market.

How much will the expectation of increase in salary?

According to the report, the 8th Pay Commission can increase the salary of lower level employees and up to 54% at the upper level. This change will cost the government an additional financial burden of about Rs 1.3 lakh crore.

To raise this amount, the government may have to take steps such as cut in capital expenses (CAPEX), improving GST rates, or more dependence on dividend from public sector companies (PSUs). Especially when tax income is slowing down and government expenditure is already fixed. This change will not only strengthen the economic status of employees, but can also speed up the economy.

How was the 7th Pay Commission?

The 7th Pay Commission, which is applicable from January 2016 to December 2025, increased an average of just 14% salary, the lowest since 1970. During that time, the government had cut capital expenses (CAPEX) to handle revenue expenses (Revex).

Now, when income from sources like income tax is slowing down, the government will have to pay attention to Dividend, GST improvement, or other financial measures from PSUs. The 8th Pay Commission can be a big step in this regard, which will not only benefit the employees, but will also increase the dynamics of the market.

There will also be change in pension

Under the Unified Pension Scheme to be implemented from FY 2026, the government’s stake in pension fund has increased from 14% to 18.5%. Out of this, 8.5% share can be put in different investment means of its will.

If the government invested 45% of this amount in the stock market by adopting international criteria, then investment in the stock market can increase from Rs 24,500 crore to Rs 46,500 crore. This will be around 7.7% of FY25’s net domestic flow, which will further strengthen the stock market.