8th Pay Commission: New update is revealed about 8th Pay Commission. Despite the Union Cabinet’s approval earlier this year, the long-awaited 8th Central Pay Commission, which will determine the next round of revision of salaries, pensions and allowances for over 12 million central government employees and pensioners, has not yet been formally constituted.
The Cabinet, chaired by Prime Minister Narendra Modi, approved the formation of the 8th Pay Commission on January 16, 2025, but the government has not yet announced the appointment of its chairman or members. The Terms of Reference (ToR) outlining the commission’s scope, including salary structures, allowances, and retirement benefits, are still pending.
Without a term of reference, the commission cannot begin its work, making a premature pay revision unlikely. The 7th Pay Commission’s term of reference was announced in September 2013, and both its chairman and ToR were notified by February 2014, suggesting that the 8th Pay Commission’s progress is significantly behind schedule.
When could employees’ salaries be increased?
Historically, pay commissions have taken two to three years from formation to implementation. However, no progress has been made yet regarding the 8th Pay Commission 2026. Consequently, its final report will not be ready before the end of 2026 or the beginning of 2027. In such a situation, implementation of revised salaries and pensions may occur only in mid-2027 or early 2028. Let us tell you that the Seventh Pay Commission was implemented in February 2014, which submitted its report in November 2015 and its recommendations became effective from January 2016 after a similar cycle of three years.
Who will benefit?
Once implemented, the Eighth Pay Commission will impact the salaries and pensions of approximately 50 lakh serving central government employees and 65 lakh retired employees, including defence personnel and pensioners. The commission will also revise dearness allowance (DA) based on inflation and other economic indicators. As with previous commissions, any changes are expected to take effect on January 1, 2026, a date previously announced by the central government.
Central Pay Commissions are typically constituted once every ten years to review and recommend revisions to central government pay scales. The Seventh Pay Commission, implemented in 2016, will remain valid until 2026.