A major update has come for central government employees and pensioners.
Even though the central government approved the 8th Pay Commission earlier this year, it has not yet been officially formed.
This delay has disappointed millions of employees, as the next big increase in salaries, pensions, and allowances now seems uncertain.
Let’s understand the key details about the 8th Pay Commission.
Commission Yet to Be Formed
The Union Cabinet, led by Prime Minister Narendra Modi, approved the formation of the 8th Pay Commission on January 16, 2025.
However, the government has still not announced the names of the Chairman or members of the commission.
In addition, the Terms of Reference (ToR)—which define what the commission will study and recommend—have not been released.
The ToR outlines areas such as salary structure, allowances, pensions, and retirement benefits.
Without these terms, the commission cannot begin its work. As a result, the possibility of an early pay revision now appears very limited.
How It Compares to the Previous Pay Commission
For reference, the 7th Pay Commission was announced in September 2013, and its Chairman and ToR were finalized by February 2014.
Compared to that, the progress of the 8th Pay Commission has been much slower.
Typically, each Pay Commission takes 2–3 years to complete its report and implement recommendations.
If the 8th Pay Commission starts working by early 2026, its final report could come by late 2026 or early 2027.
In that case, the new pay and pension structure might not be implemented until mid-2027 or early 2028.
For example, the 7th Pay Commission was set up in February 2014, submitted its report in November 2015, and its recommendations took effect from January 2016.
When Will the New Pay Structure Start?
Usually, the recommendations of a Central Pay Commission become effective from January 1st of the implementation year.
The government had earlier stated that the 8th Pay Commission’s recommendations would apply from January 1, 2026. However, looking at the current delay, this timeline may be pushed forward.
Each Central Pay Commission is formed every 10 years to review the pay scales and allowances of government employees.
Since the 7th Pay Commission came into effect in 2016, its cycle runs until 2026.
But with the 8th Pay Commission’s slow progress, employees might have to wait longer for their next pay revision.
