8th Pay Commission: No Proposal Under Consideration To Constitute New Pay Commission

The Central Pay Commission, typically, formed every 10 years to review and revise the basic pay, allowances, and pensions of employees and pensioners, is not on the government's agenda for now. Speculations were rife that the government would announce the 8th Pay Commission before the 2025-26 budget to take it into discussion then, but it has been officially clarified that no such proposal is under consideration.

In response to a question on the constitution of the Eighth Central Pay Commission posed by parliamentarians Javed Ali Khan and Ramji Lal Suman in the Rajya Sabha, Minister of State for Finance, Pankaj Chaudhary, stated, “No such proposal is under consideration with the government for the constitution of the Eighth Central Pay Commission for the central government employees, at present.”

This statement has quelled expectations among government employees and pensioners who were anticipating an announcement before February 2025.

The last commission, the 7th Pay Commission, was constituted in February 2014. It submitted its recommendations in November 2015, which were implemented in January 2016. Thus, the expectations were high that the government would initiate the 8th Pay Commission soon, as such commissions require time to study existing pay scales, gather stakeholder suggestions, and present recommendations to the government before implementation.

How Important Is Pay Commission Recommendation:

In the 7th Pay Commission, the minimum salary for a central government employee saw a significant revision, increasing from Rs 7,000 to Rs 17,990. This change highlighted the impact of the commission’s recommendations on improving the financial standing of government employees. Once the commission sends a recommendation, the government deliberates and implements the approved recommendations, often bringing significant changes to the pay structure and benefits for employees and pensioners.

However, the absence of any proposal to constitute the 8th Pay Commission indicates an inevitable delay in initiating this process.

Delay In Implementation:

The term of the 7th Pay Commission is going to be completed on December 31, 2025, leaving only a little over a year to initiate and complete the necessary processes for forming the 8th commission and reviewing and implementing its recommendation. The absence of any proposal for the 8th Pay Commission means delays in both its formation and the subsequent revision of pay scales.

Impact On Employees And Pensioners:

The National Council of the Joint Consultative Machinery (JCM) presented the first memorandum in this regard to former Cabinet Secretary Rajiv Gauba in July 2024 during Union Budget, and to his succeeding secretary, T.V. Somanathan in August 2024. However, the recent statement by the Minister has diminished hopes for over one crore central government employees and pensioners awaiting a revision in pay scales.

While there is still time for the government to act before the term of the 7th Pay Commission ends, the delay has caused uncertainty and concern among government employees and pensioners.