8th Pay Commission Might Not Come Into Effect From January 1, 2026? Know Details

The Union Budget for 2025 was presented on Saturday, February 1 by Finance Minister Nirmala Sitharaman. While the Budget included several announcements aimed at the welfare of senior citizens, the lack of any announcements related to the 8th Pay Commission indicated uncertainty regarding the timeline of its implementation.

The announcement of a roadmap for implementation and an outlay for the 8th Pay Commission was among the key budget expectations of more than 1.2 crore central government employees, especially after the Centre announced that the commission had been established.

The 7th Pay Commission’s tenure is set to end later this year on December 31, 2025. However since the 8th Pay Commission was not mentioned in Sitharaman’s budget speech, it is unlikely that the 8th Pay Commission will be implemented soon after the 7th Pay Commission’s tenure ends. At the same time, it is likely that the budget and the roadmap for the 8th Pay Commission will now be included in the Union Budget for 2026-27.

According to a report by Moneycontrol which cited Expenditures Secretary, Manoj Govil, historically Pay Commissions have taken more than one year to present the report. He added that even if the Pay Commission is set up in March 2025, the report is likely to come out in March 2026.

“Previous commissions have taken more than one year to present the report. If the commission is set up even in the month of March 2025, the report should come in by March 2026, though it could take less than a year. So, for FY26 we don’t see any impact of the 8th pay commission,” Govil told Moneycontrol.

Govil also said that while the recommendations may be accepted in FY27, some of the recommendations might come into effect soon after the tenure of the 7th Pay Commission ends on January 1. He added that the effect of the recommendations would reflect only as arrears and the expenditure will be rolled over to 2026-27.

“Even if the Commission’s recommendation is accepted in FY27, it is possible some of the recommendations may be given effect from January 1, 2026, for those three months, which fall in FY26. But since those will be arrears, the expenditure will be rolled over to 2026-27,” Govil explained,” Govil said.