Central government employees and pensioners may have to wait until 2028 for the benefits of the 8th Pay Commission, despite the Union Cabinet’s approval of the proposal earlier this year. Past experience with pay panels suggests that the implementation process usually stretches over two to three years from the time of constitution.
Announcement made in January, but no progress yet
On 16 January 2025, Union Minister Ashwini Vaishnaw announced that the Cabinet had approved the 8th Pay Commission to revise salaries and pensions of central government staff. Nearly 50 lakh employees and about 65 lakh pensioners are expected to benefit.
However, more than nine months later, the government has yet to release the Commission’s notification, Terms of Reference (ToR), or list of members. Without these, the actual process has not even begun.
Why implementation could be delayed till 2028?
The delay has sparked concern among employees and unions, who fear the recommendations may not materialise before 2028. Historical timelines support this concern.
Add Zee Business as a Preferred Source
6th Pay Commission: Constituted in October 2006, it submitted its report in March 2008. The government approved the recommendations in August 2008, with retrospective effect from 1 January 2006. The process took around 22–24 months.
7th Pay Commission: Formed in February 2014, it submitted its report in November 2015. The recommendations were approved in June 2016 and implemented retrospectively from 1 January 2016, nearly 33 months after its formation.
If the 8th Commission follows a similar pattern, its recommendations may only be implemented by early 2028.
What changes are expected?
Although employees may need to wait, the effective date for revised salaries and pensions has already been fixed at 1 January 2026. This means beneficiaries will be entitled to arrears once the recommendations are cleared.
Based on the projected fitment factor of 2.46, the minimum basic salary for Level-1 employees is expected to rise from ₹18,000 to about ₹44,000. For those in Level-6, the current ₹35,400 basic pay could increase to over ₹87,000. The Dearness Allowance, which now stands at 55 per cent of basic pay, will reset to zero when the new matrix comes into effect and will climb gradually thereafter.
Why the Commission matters?
The Pay Commission’s role extends beyond pay hikes. It also covers pensions, allowances, bonuses and perks, directly affecting the financial security of more than 1.2 crore employees and pensioners.