8th Pay Commission Update: A major update on the Eighth Pay Commission has emerged from the winter session of Parliament. During the winter session of Parliament, the government once again responded to questions regarding the commission’s timeline, confirming that the process is moving forward, but a final decision on its implementation will be taken later. It is noteworthy that in November 2025, the Centre approved the terms of reference for the 8th Pay Commission and gave the commission 18 months to submit its report, after which the review of salaries, allowances and pensions formally began.
What update did the Union Minister give in Parliament?
Responding to questions from Members of Parliament, Minister of State for Finance Pankaj Chaudhary stated that the government would determine the date for the implementation of the 8th Pay Commission at an appropriate time. He also assured that budget provisions would be made once the recommendations are accepted. While no specific date for the implementation of the 8th Pay Commission was provided, he confirmed that further decisions would be made only after the Commission’s recommendations are received.
According to Pratik Vaidya, Managing Director of Karma Management Global Consulting Solutions Pvt. Ltd., there is a well-known pattern in the implementation of a Pay Commission. Three indicators indicate that a new Pay Commission is imminent. The first indicator is the time gap since the last revision, the dearness allowance (DA), and the government’s financial situation.
The 5th, 6th, and 7th Pay Commissions each had a gap of 10 years, effective in 1996, 2006, and 2016. The second indicator has been the increase in dearness allowance (DA). Whenever the DA exceeds 50% of the basic pay, this happened in early 2024, and now the DA has reached 58%. Employee unions intensify their demands for pay restructuring and DA merger.
8th Pay Commission officially implemented
Vaidya says that all these signals regarding the Eighth Pay Commission have already emerged, as the Cabinet has approved the Commission and formally notified Parliament. The Eighth Pay Commission has officially come into effect. The speculation surrounding the Eighth Pay Commission’s formation has now ended. We have now moved beyond “hints.”
A Cabinet decision in January 2025 approved the proposal in principle, followed by a detailed resolution passed in the Lok Sabha on November 3, 2025, setting out the Commission’s composition and mandate. The Commission’s terms of reference clearly state that the Commission will review the salaries, allowances, and pensions of both serving and retired employees.