8th Pay Commission Update: Millions of government employees and pensioners across the country are awaiting the implementation of the 8th Pay Commission. Recently, the government clarified in the Rajya Sabha that the 8th Pay Commission will review pensions along with salaries. The Commission began work on November 3, 2025. Changes to salaries, allowances, and pension structures will be finalised in the coming months. The Finance Ministry informed the Lok Sabha that the government will decide later on when the 8th Central Pay Commission will be implemented. The Ministry also stated that adequate provisions will be made in the budget to implement the Commission’s recommendations, which the government has approved.
Will there be changes in pensions?
The biggest question among employee organisations and the pensioner community has been whether pensions are included in the scope of the 8th Pay Commission. In fact, several employee unions had previously written to the government expressing concern that pensions should be explicitly mentioned in the “Terms of Reference.”
Earlier media reports claimed that the 8th Pay Commission could be implemented from January 1, 2026. Other timelines have also been discussed at the policy level. These include implementing it from FY28 and paying arrears for five quarters starting January 1, 2026. However, the ministry’s new statement did not confirm any specific date.
The government’s stance on dearness allowance appears somewhat more rigid. Employees had a strong expectation that when DA crossed 50%, it would be merged with the basic salary. This demand is long-standing, and employee unions have argued that base salaries should increase as inflation rises. The government has temporarily put an end to this expectation in Parliament. The Minister of State for Finance clarified that no proposal to merge dearness allowance with basic pay is under consideration.