Key Highlights:
- The 8th Pay Commission was approved by the Union Cabinet on January 16, 2025.
- Expected implementation from January 1, 2026, but reports suggest a possible delay.
- Government yet to announce ToR, chairman, and commission members.
- Employees demand DA merger as inflation-linked DA has exceeded 50%.
- The Pay Commission follows a 10-year cycle, with previous implementations in 2006 and 2016.
As the central government has already announced the 8th Pay Commission, employees are awaiting further details on its implementation timeline. The 7th Pay Commission’s tenure is set to end on December 31, 2025, and the new 8th Pay Commission is expected to be implemented from January 1, 2026. However, according to media reports, there is speculation that the implementation might be delayed beyond this date.
Government Approval and Timeline
The Union Cabinet, led by Prime Minister Narendra Modi, approved the 8th Pay Commission on January 16, 2025, for revising salaries and pensions of central government employees. However, the government has not yet announced the terms of reference (ToR), members, or the chairman of the commission.
According to an ET report, Rohitaashv Sinha, Partner at King Stubb & Kasiva, Advocates and Attorneys, stated:
“The 8th Pay Commission implementation process will follow the expiration of the 7th Pay Commission term in 2026.”
Experts suggest that while past pay commissions have followed a 10-year cycle, the implementation date of the 8th Pay Commission remains uncertain.
Minister of State’s Response in Rajya Sabha
On February 4, 2025, the Minister of State in the Ministry of Finance, in response to questions in the Rajya Sabha, confirmed that the government has approved the constitution of the 8th Central Pay Commission. However, no specific timeline for its execution has been shared.
Previous Pay Commission Timeline
Historically, pay commissions have been established every 10 years:
- 6th Pay Commission: Implemented on January 1, 2006
- 7th Pay Commission: Implemented on January 1, 2016
- 8th Pay Commission: Expected implementation from January 1, 2026 (subject to confirmation)
Rationale Behind Early Formation
Union Information and Broadcasting Minister Ashwini Vaishnaw explained that setting up the 8th Pay Commission well in advance ensures timely execution:
“The last Pay Commission began in 2016, and its term will conclude in 2026. The establishment of the 8th Pay Commission in 2025 ensures sufficient time for recommendations to be implemented before the 7th Pay Commission period ends.”
The appointment of the chairman and two members is expected in the coming months.
Employee Demand for DA Merger
Meanwhile, according to an NDTV Profit report, in a recent meeting held by the Department of Personnel and Training (DoPT), the National Council of Joint Consultative Machinery (NC-JCM) urged the government to merge Dearness Allowance (DA) with basic salaries ahead of the 8th Pay Commission implementation.
During discussions with DoPT Secretary Rachna Shah, employee representatives emphasized that DA has already surpassed the 50% threshold, which justifies merging it with the basic salary.
