Govt May Not Set Up 8th Pay Commission, Likely To Consider Other Methods To Revise Pay

Government employees looking forward to the setting up of the 8th Pay Commission will be in disappointment as the government is unlikely to set up the commission at all. In fact, the government may altogether do away with the pay-panel system.

Government employees look forward to new pay commissions in anticipation of new salary structures. Pay commissions help the government in deciding the salaries of government employees in alignment with rising inflation and other macroeconomic factors.

Earlier in 2016, the recommendations made by the 7th Pay Commission were implemented by the central government. The 7th Pay Commission’s term is scheduled to conclude on December 31, 2025. Prior to the 7th Pay Commission, the 6th, 5th, and 4th pay commissions had tenures of 10 years each.

The government is now considering other ways of revising salaries and pensions for central government employees, according to a report in the Financial Express.

“The government is thinking of a different way to revise salaries and pensions for central employees and pensioners instead of setting up a new pay commission like before,” the newspaper quoted a source as saying.

Earlier in 2024, the Minister of State for Finance, Pankaj Chaudhary, had said on the Floor of Parliament that the government has no proposal under consideration for the formation of the 8th Central Pay Commission, and thus the question of a timeline does not arise.

The news of the government not considering a new pay commission is likely to increase anxiety among central government employees.

In December 2024, the All India State Government Employees Federation had announced that they would launch a nationwide agitation in 2025 if their demand for a new pay commission is not met.

Additionally the National Council (Staff Side) Joint Consultative Machinery (NC JCM) also reacted to the clarification by the Ministry of Finance. In their response the Union Cabinet Secretary also urged the “immediate” establishment of the new pay commission.