8th Pay Commission: Central govt employees may have to wait longer for new pay hike

1.2 crore central government employees and pensioners await the 8th Pay Commission, delayed since its January 2025 approval. The commission lacks leadership and defined terms of reference, jeopardizing the January 2026 implementation target.

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8th Pay Commission: Over 1.2 crore central government employees and pensioners are staring at an uncertain future as the much-awaited 8th Pay Commission remains stuck in bureaucratic limbo, nearly six months after it was approved in principle by the Centre.

Despite the Union government’s nod on January 16, 2025, the commission is yet to be formally constituted. No chairperson or members have been appointed, and the crucial Terms of Reference (ToR), which define the framework for salary and pension revisions, are still pending. This prolonged delay has now cast serious doubts over whether the new pay structure can be implemented by its expected date, January 1, 2026.

Missed timeline?

If the past is any indication, preparing and implementing a new pay commission report is no quick task. The 6th Pay Commission, for instance, took nearly 23 months from constitution to Cabinet approval. Similarly, the 7th Pay Commission took around 28 months. In both cases, the implementation was backdated to January 1 of the applicable year, with arrears paid later.

Given that the 7th Pay Commission's tenure ends on December 31, 2025, the current delay means the timeline for the 8th Pay Commission to take effect from the very next day seems virtually impossible — unless the government fast-tracks appointments and proceedings dramatically.

2028 more likely, say observers

Experts now believe that even if the commission is formed by late 2025 or early 2026, the earliest possible window for submitting a comprehensive report would be 2027 or 2028. Add a few more months for Cabinet clearance and implementation, and it's clear the new pay scales may only come into force by 2028.

That said, the Centre could choose to implement the recommendations retrospectively from January 2026 and pay arrears — but that hinges on political will and fiscal feasibility.

What's at stake for employees?

• Employee unions have already submitted a list of demands to the government. These include:
• Fixing the minimum wage based on a five-member family standard
• Merger of certain pay levels to reduce disparity
• Restoration of commuted pensions after 12 years instead of the current 15
• Revising pensions every five years, instead of waiting for each pay commission cycle
• Merging 50% of Dearness Allowance (DA) into the basic pay to offset inflation
• These demands are aimed at boosting financial security for government staff and retirees amid rising living costs.

Staffing begins, but no leadership yet:

The only concrete move so far has been the issuance of a deputation circular to fill 35 staff posts for the new commission. However, in the absence of leadership and ToR, the process appears stalled.