8th Pay Commission Update: Will the Government Announce Big Changes in the Budget?

8th Pay Commission: There is a significant amount of curiosity among central employees and pensioners about the 8th Pay Commission. Numerous rumors are spreading on social media regarding its implementation. For instance, some say it will start on January 1, 2026, and that the DA will be combined with the basic salary. However, to dispel these rumors, State Finance Minister Pankaj Chaudhary clarified in the Lok Sabha on Monday that no specific date has been established for the implementation of the 8th Pay Commission.

Additionally, no decision has been made to merge DA with the basic salary. The commission, led by Justice (Retd.) Ranjana Prakash Desai, is currently working on the recommendations for the 8th Pay Commission.

An important announcement may be made in the budget

In his response, Pankaj Chaudhary emphasized that funds will need to be arranged for the salary increases of around 50.14 lakh central government employees and approximately 69 lakh pensioners under the 8th Pay Commission. Therefore, it is crucial to understand that if the budget is involved, this could be revealed during the budget announcement. It is anticipated that a significant announcement regarding the salaries of employees and pensioners under the 8th Pay Commission may be made during the budget.

What is the latest update on the 8th Pay Commission?

The Government of India has confirmed that the 8th Central Pay Commission (CPC) has been officially established and is currently functioning. However, no commitment has been made regarding its implementation date of January 1, 2026. In a written response to the Lok Sabha on Monday, State Finance Minister Pankaj Chaudhary mentioned that the Terms of Reference (ToR) for the 8th CPC was officially announced on November 3, 2025. This shows that the pay panel has already commenced its work.

However, it was also noted that before the 8th Pay Commission can be implemented, the Commission will need to take into account the current economic conditions in the country, the necessity for fiscal responsibility, and the financial implications for state governments. The government also assured Parliament that funds will be arranged to implement the accepted recommendations.

The minister confirmed that approximately 50.14 lakh central government employees and approximately 69 lakh pensioners will be included in the 8th CPC. The commission, headed by Justice (Retd.) Ranjana Prakash Desai, has been tasked with recommending changes to the salary, allowances, and pension structure for central government employees and pensioners.