Big update on 8th Pay Commission
8th Pay Commission: The atmosphere of uncertainty that was prevailing for the central employees and pensioners for the last few weeks has now become completely clear. The news that lakhs of government employees and retired personnel across the country were waiting for, has been approved by the Finance Ministry in the Rajya Sabha. The government has made it clear that Eighth Pay Commission (8th Pay Commission) will not only decide the salary structure of the existing employees, but will also give its recommendations on revision of pension.
Will there be change in pension?
The biggest question among employee organizations and pensioner society was, has pension been included in the scope (Terms of Reference) of the 8th Pay Commission? In fact, earlier many employee unions had written letters to the government expressing their concern that pension should be clearly mentioned in the ‘Terms of Reference’.
Clearing this doubt, Minister of State for Finance Pankaj Chaudhary gave an official statement in the Rajya Sabha. He said in clear words that the mandate of the Eighth Pay Commission is very wide. This commission will review the salary and allowances as well as pension. This simply means that when the Commission submits its report, a complete blueprint will be prepared for increasing the pension of retired employees and adjusting it according to the current inflation.
What did the government say on adding DA to basic salary?
While there has been relief on the pension front, the government’s stance on Dearness Allowance (DA) appears to be a bit strict. There was a big expectation in the minds of the employees that when DA crossed 50%, it would be merged into the basic salary. This demand is very old and the employee unions have been arguing that with the increase in inflation, the basic salary base should also increase.
However, the government has put this hope on hold in the Parliament for the time being. The Minister of State for Finance clarified that no proposal to merge dearness allowance with basic pay is under consideration with the government. That is, for now the old formula of salary calculation will remain applicable and employees may have to wait longer on this front.
Work started from 3rd November
The government has also confirmed that the Eighth Pay Commission has been officially constituted on November 3, 2025. The Chairman and members of the Commission have been appointed and they have been informed about their terms of reference (ToR).
Now this commission will study the current economic conditions, inflation rate and the condition of the government treasury in the next few months. On this basis, proposals for major changes in salary structure, allowances and pension system will be prepared. This news is definitely a positive sign for the employees that the process has now moved out of paper and onto the ground. The coming time will witness big economic changes for the government employed class.
Also read- 8th Pay Commission: Will salary-pension increase from next month? The government said this big thing