8th Pay Commission: All central government employees and pensioners are now eagerly awaiting the implementation of the 8th Pay Commission. While the exact timeline for its implementation is still unclear, discussions about the 2026 budget are gaining momentum. According to a report, the recommendations of the 8th Pay Commission may take 15 to 18 months to be finalised.
This clearly indicates that the new salary system is likely to be implemented in 2026. More than half of January has already passed, but there is currently no possibility of a salary increase for central government employees. The implementation of the new salary structure now appears to be delayed, and there are indications that the delay could be significant.
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New Pay Commission is implemented every 10 years.
Traditionally, a new pay commission is implemented every ten years. The 7th Pay Commission was implemented on January 1, 2016. Based on this, the 8th Pay Commission was also expected to be implemented from January 1, 2026. However, neither the report has been released nor the government made any final decision.
The central government had previously implemented the 7th Pay Commission in January 2016. Since then, everyone has been eagerly awaiting the implementation of the 8th Pay Commission. As mentioned, neither the report has been released nor has the government made any final decision.
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What the report says
According to ICRA, whenever the 8th Pay Commission is implemented, the government may implement it from January 1, 2026, i.e., with retrospective effect. If this happens, employees could receive a large lump sum of arrears. According to the report, these arrears are likely to be for 15 months or even more.
This would place a significant financial burden on the government. According to the rating agency, government salary and pension expenses could increase by 40 to 50per centt at the time of the pay commission’s implementation. This will directly impact the government’s treasury. This has been observed before. During the implementation of the 7th Pay Commission, even with only six months of arrears, salary expenses saw a surge of over 2per centnt. In contrast, the 6th Pay Commission involved paying arrears for more than two and a half years. The central government has been implementing a new pay commission every ten years. Dearness Allowance (DA) is also increased twice a year, which significantly benefits the employees.
