8th Pay Commission: The central government has largely clarified the situation regarding the 8th Pay Commission. Much information has emerged, such as the lack of a proposal to merge DA-DR with basic pay, its implementation date, arrears in case of delay, and much more. However, a lot of research is still underway regarding the 8th Pay Commission. The government has answered many questions during the current winter session of Parliament.

Regarding this, the government has also tabled the 8th Pay Commission document, the “Gazette,” on the floor of the House. This notified Gazette is essentially the government’s notification on the 8th Pay Commission. It describes the commission’s framework and functioning.

Who all are covered under the 8th Pay Commission?

The Central Government announced the formation of the Eighth Central Pay Commission by issuing a notification on November 3, 2025. Justice Ranjana Prakash Desai was appointed as the Chairperson of the Commission, with Professor Pulak Ghosh as Member (Part-time) and Pankaj Jain as Member-Secretary.

Through this gazette, the government informed Parliament that the Eighth Pay Commission will review and make recommendations on the salaries, allowances, pensions, and other benefits of government employees. This includes employees of the Industrial and Non-Industrial Central Government, All India Services, Defence Forces, Union Territories, CAG, regulatory bodies created by Parliament (excluding the RBI), employees of the Supreme Court and High Courts, and judicial officers of subordinate courts in Union Territories.

What will the 8th Pay Commission do?

The Centre has asked the Commission to review the pay and allowances, other cash or kind benefits of all eligible categories of employees and suggest necessary changes. The pay structure has to be prepared with the aim of bringing better talent into government service and increasing efficiency, accountability and responsibility in work. The aim is to examine the existing bonus schemes and suggest how, on what principles and parameters, better performance and productivity should be rewarded.

The 8th Pay Commission has to review all the allowances including DA i.e. dearness allowance and their conditions and recommend making them rational and simple. To review and suggest death-cum-retirement gratuity and pension for both covered and non-covered employees of the National Pension System (NPS/Integrated Pension Scheme).

What things need to be taken care of?

The Commission will make recommendations based on the country’s economic situation, including the need for fiscal discipline. Furthermore, it will also consider ensuring adequate resources for development and welfare programs, the cost of non-contributory pension schemes, and the impact of these recommendations on state finances, as most states adopt the recommendations of the Central Pay Commission. Current pay and other provisions in the private and public sectors will also need to be monitored.

What is the Centre’s stand on DA-DR merger?

The Rajya Sabha also asked whether the government was currently considering providing immediate relief by merging dearness allowance/dearness relief (DA/DR) with basic pay. The government clarified that no such proposal was currently under consideration. It was also asked whether there was no proposal for pension revision; the response stated that the Eighth Pay Commission would make recommendations on issues related to allowances and pensions, in addition to salaries, meaning pensions are not entirely outside the scope.

What is the deadline for the 8th Pay Commission?

The Commission will determine its own methodology and may engage advisors, experts, and institutional consultants as needed. Ministries and departments will be required to provide the necessary documents and information, and it is expected that state governments and employee organizations will provide full cooperation. The Commission is headquartered in Delhi and is required to submit its report within 18 months. If necessary, the Commission may also submit interim reports.