Central Government To Finalize 8th Pay Commission Timeline? Here's What We Know

The Indian government has yet to determine the exact timeline for the submission of the 8th Pay Commission’s report, which will recommend revisions to salaries and pensions for central government employees. Finance Minister Nirmala Sitharaman informed the Lok Sabha that the schedule for submission, along with the terms of reference, will be "decided in due course."

The 8th Pay Commission was announced in January 2024, and since then, central government employees and pensioners have been awaiting updates on the appointment of its chairman and two committee members. The government is expected to announce their names next month.

Meanwhile, parliamentarians Kangna Ranaut (BJP) and Sajda Ahmed (Trinamool Congress) raised questions in the Lok Sabha regarding the pay panel’s formation and its potential economic impact. Responding to their queries, the finance minister revealed that as of March 1, 2025, approximately 36.57 lakh central government civilian employees and 33.91 lakh pensioners stand to benefit from the recommendations. Defence personnel and pensioners will also be included in the revisions.

One of the key concerns is whether the recommendations of the 8th Pay Commission will be implemented starting January 2026, as the 7th Pay Commission’s term is set to conclude on December 31, 2025. However, historical precedents suggest a delay is likely. Previous pay commissions have taken over a year to finalize their reports, and with this commission’s late announcement, the implementation may not take effect until the 2026-27 financial year.

The financial impact of the pay panel's recommendations will only be known once the report is submitted and approved by the government. To assess the impact, the government has sought input from major stakeholders, including the Ministry of Defence, the Ministry of Home Affairs, the Department of Personnel & Training, and state governments. However, there has been no official confirmation of any consultations with employee unions or pensioner associations.

Earlier pay commission recommendations have resulted in significant salary hikes. The 7th Pay Commission, set up in 2013, gave its report in 2015 and decided a 23.55 per cent rise in pay, allowances and pensions. This benefitted around one crore employees and pensioners. A similar trend is anticipated from the 8th Pay Commission, but the extent of revisions remains uncertain.