8th Pay Commission 2026: Tuesday, February 3, 2026, was a significant day for millions of government employees and pensioners across the country. In response to a question posed by Rajya Sabha MP Javed Ali Khan, Minister of State for Finance Pankaj Chaudhary clarified the government’s stance on the formation of the 8th Pay Commission, its timeline, and pension rules. This statement put an end to speculation about delays in the commission’s formation or discrimination against pensioners.

18-Month Timeline and Pay-Pension

In a written response, the Minister of State for Finance confirmed that the government had notified the formation of the 8th Pay Commission and its Terms of Reference (ToR) on November 3, 2025. According to the rules, the commission must submit its recommendations to the government within 18 months of its formation.

This means that the Commission can submit its final report by May 2027, which can be implemented retrospectively, i.e., January 1, 2026. The Commission is tasked with reviewing all important aspects related to the salaries, allowances, and pensions of central government employees, and its recommendations will determine the future salary structure.

Discrimination among Pensioners

An important question was raised in the Rajya Sabha regarding whether the government, through the Finance Bill 2025, intends to discriminate among pensioners based on their retirement date. The government categorically stated that no such categories are being created among pensioners.

The pensions of all central government employees are determined under the Central Civil Services (Pension) Rules, 2021, and the Extraordinary Pension Rules, 2023. The government clarified that the Pay Commission is an expert body that recommends pay scales and pensions for various categories, which are implemented through instructions issued from time to time without any discrimination.

Pension Rules and the Finance Act 2025

The government also clarified that Part IV of the Finance Act 2025 only includes statutory provisions regarding existing pension rules and pension liabilities from the Consolidated Fund of India. This amendment will not alter existing civil or defence pension rules.

8th Pay Commission

This measure is intended solely to ensure continuity of the existing system, and not to alter pension entitlements or the method of calculation. This has provided significant relief to pensioners who were anticipating changes in the rules.

Commission Preparations

Significant progress has also been made on the ground regarding the functioning of the 8th Pay Commission. In January 2026, the National Council (JCM-Staff Side) was informed that office accommodation had been allocated for the Commission. Furthermore, to ensure the smooth functioning of the Commission, the senior PPS,

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