The wait is yet not over for the announcement of 8th Pay Commission. Central Government employees are curious to know why there is the latest regarding the announcement? And, when the announcement is expected to finally come? The central government is expected to announce the formation of the 8th Pay Commission next week. This decision could be made just before the Bihar Assembly elections.
What are the government’s plan for 8th Pay Commission
According to media reports, the government has almost finalized the commission’s Terms of Reference (ToR), including its scope of work, and the names of its chairman and members. The commission will review the salaries, allowances, pensions, and other benefits of central government employees and recommend a new pay structure for the coming years. The commission is expected to take six to 12 months to submit its report.
The government plans to implement the new pay structure retrospectively from January 1, 2026. Based on past records, this move is being delayed by nearly a year from the normal timeline. Previously, Prime Minister Narendra Modi approved the establishment of the 8th Pay Commission on January 16, 2025, just before the Delhi Assembly elections.
What is the process before taking final decision
The government has taken input from state governments, PSUs, and other major institutions regarding this commission. Because, after the Central Pay Commission is released, states typically revise their employees’ salaries based on the same recommendations. After each Pay Commission, employees’ salaries and pensions increase, boosting consumption and demand in the market.
However, this places a financial burden on both the central and state governments. State governments, Public Sector Undertakings (PSUs), and central universities typically adopt the central pay scale, increasing their expenditure. Although the Commission’s recommendations are not binding on the central government, the government usually implements them with minor modifications.