8th CPC Constitution: Delay Not Due To Fiscal Concerns, Government Awaits Inputs From Key Ministries

The pay commission is set up every 10 years. It reviews and recommends adjustments in the government employees' salaries. The recommendations are also applicable to the pensioners. The 7th pay commission's recommendations were implemented in 2016, whose term will complete on December 31, 2025. However, the 8th Pay Commission has not yet been constituted, and as per the past records, it takes around one year for the Commission to provide its recommendations. There is a delay, but it will be constituted. When parliamentarian Javed Ali asked the question in Rajya Sabha on August 12, 2025, about the reason for seven months delay in forming the 8th Central Pay Commission (CPC), and the government's plans around it, the Minister of State in the Finance Ministry, Pankaj Chaudhary, replied that the government has decided to constitute the Commission.

In the written reply, Chaudhary said, "It has been decided by the Government to constitute the 8th Central Pay Commission." He also clarified that the cause of the delay was not fiscal.

The minister clarified that the government has sought input from ministries and states, and the responses are still being received.

It read, "Inputs for the terms of reference of the Eighth CPC had been sought from the Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training, and all the States vide communications dated 17.01.2025 and 17.02.2025."

Government's Notification For CPC Constitution

Once the inputs are received, an official notification along with the details of the Commission will be issued.

So, as per the response, fiscal burden is clearly not the reason for the delay.

Once the 8th CPC is notified, the chairperson and members of the Commission will be appointed. Chaudhary said in an earlier reply that the Commission would make the recommendation, and once the government approves it, it would be notified.

Government employees eagerly await the CPC due to the revision in the minimum salary. For example, after the 7th Pay Commission's recommendation, the minimum salary for a central government employee increased from Rs 7,500 to Rs 17,990.

8th Pay Commission And Fitment Factor

While the government has asked for input from ministries and States, the National Council-Joint Consultative Machinery (NCJCM) also provided the government with its input in March this year. NCJCM is an official body that facilitates communication between the government's official and staff sides. It asked the government to keep a fitment factor of not less than 2.57, recommended by the 7th CPC.

Fitment factor is a multiplication unit to calculate the revised salary. For example, if the 8th CPC recommends a fitment factor of 2.57, the minimum salary of Rs 18,000 would become Rs 46,260 following the formula (Salary * fitment factor).

This is the reason employees' associations want a higher fitment factor. The 6th pay commission recommended a fitment factor of 1.86.