The much-anticipated 8th Pay Commission (CPC), which will determine salary, pension, and allowance revisions for over 1.2 crore central government employees and pensioners, is yet to take shape formally.
Despite the government’s approval in January 2025, two crucial steps — appointment of a chairman and finalisation of the Terms of Reference (ToR) — remain pending, making early implementation highly improbable.
Possible Delays
While the Union Cabinet, led by Prime Minister Narendra Modi, approved the formation of the 8th Pay Commission on 16 January 2025, the government has not yet announced the appointment of its chairperson or members. Nor has it notified the ToR, a prerequisite for the commission to begin functioning.
The ToR outlines the scope of the commission’s work, including pay structures, allowances, and retirement benefits. Without this document, the commission cannot be formally constituted, and no appointments can be made.
By comparison, the 7th Pay Commission was announced in September 2013, and both its chairman and ToR were notified by February 2014 which is a clear indication of the current delay in the 8th CPC’s progress.
Possible Implementation Timeline
Historically, Pay Commissions have taken around two to three years from formation to implementation. Based on this precedent, and given that the 8th CPC has yet to be constituted, the likelihood of employees seeing a salary revision before mid-2027 or early 2028 appears low.
The 7th Pay Commission, for instance, was set up in February 2014 and submitted its report in November 2015. The recommendations came into effect in 2016. Applying a similar timeline, even if the 8th CPC begins work by early 2026, the final report may not be submitted before late 2026 or early 2027 — pushing actual implementation to around mid-2027.
Scope And Beneficiaries
Once operational, the 8th Pay Commission will revise the pay, pensions, and allowances of over 1.2 crore central government employees and pensioners, including around 50 lakh serving employees and 65 lakh retirees — among them defence personnel and pensioners.
The commission will also adjust the Dearness Allowance (DA) in line with inflation. As with previous commissions, the changes are expected to take effect from 1 January 2026, the date announced by the Centre earlier this year.
Background: Pay Commissions And Their Cycle
Central Pay Commissions are typically set up once every ten years to review and recommend revisions to the pay structure of central government employees. The 7th Pay Commission, implemented in 2016, is valid until 2026.
With the 8th CPC’s ToR and leadership appointments still pending, government employees may have to wait longer than anticipated for clarity on their next pay revision cycle.