8th Pay Commission: There was growing concern among central government pensioners about whether pensions were not included in the 8th Pay Commission. The government clarified on December 2, 2025, that pensions were not excluded from the 8th Pay Commission. Minister of State for Finance Pankaj Chaudhary said in a written reply in the Rajya Sabha that the 8th Pay Commission would make recommendations on all issues, including salaries, allowances, and pensions.
Clear answer on pension revision
Minister Pankaj Chaudhary was asked whether the 8th Pay Commission did not propose pension revisions and why. In response, he said that the Commission’s scope includes pensions and that recommendations will be made on this issue as well. This means that the Commission’s recommendations will also apply to pensioners.
Government’s stand on merging DA
Another question asked whether there were any plans to merge dearness allowance (DA) with basic pay. He categorically stated that the government has no proposal under consideration to merge DA with basic pay. The Finance Ministry had previously clarified this in the Lok Sabha.
The government has decided the ToR
The central government issued a notification on November 3, 2025, establishing the 8th Central Pay Commission (CPC). It also set forth Terms of Reference (ToR). According to the ToR, the commission is to review and recommend necessary changes to the salaries, allowances, pensions, and other cash or in-kind benefits of central government employees.
When will the Pay Commission report come?
The 8th Pay Commission is required to submit its report within 18 months. The ToR also states that the Commission may submit an interim report on any issue if necessary. It is scheduled to be implemented from January 1, 2026. However, experts believe there may be a delay, as it will take approximately 18 months for the Commission to submit its recommendations.