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The commission, which is expected to revise salaries and pensions, will have a significant impact on over 1.2 crore central government employees and pensioners.
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Updated : Oct 04, 2025, 10:37 AM IST
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The government's announcement on setting up the 8th Pay Commission has been eagerly awaited by millions of central government employees and pensioners. Despite the Union Cabinet's approval for the constitution of the 8th Pay Commission in January 2025, the process has been slow, leaving employees and pensioners uncertain about their future benefits. The commission, which is expected to revise salaries and pensions, will have a significant impact on over 1.2 crore central government employees and pensioners.
The 8th Pay Commission's chairman has not been appointed and also the Terms of Reference (ToR) has not been finalised.
The 8th Pay Commission is expected to come into effect from January 1, 2026. However, the delay in finalising the Terms of Reference (ToR) and appointing the chairman and members of the commission has raised concerns about the feasibility of this timeline. The ToR is an important component that determines the salary structure, allowances, and retirement benefits that will be subject to recommendations from the commission. Without a finalized ToR, the commission cannot be formally established, and its work cannot begin.
The 7th Pay Commission was announced in September 2013, and its chairman and ToR were notified in February 2014. In contrast, the 8th Pay Commission's ToR is still pending, and the government has not officially announced the appointment of the chairman and other members of the commission. This delay indicates a potential lag in the formation of the 8th Pay Commission.
The 8th Pay Commission will revise the pensions, allowances, and salaries of over 1.2 crore central government employees and pensioners. This includes about 50 lakh central government employees, including defence personnel, and around 65 lakh central government pensioners, including defence retirees. The commission's recommendations will also revise the Dearness Allowance as per inflation, providing a much-needed boost to employees' and pensioners' purchasing power.
In a recent development, the Union Cabinet approved a 3% increase in dearness allowance and dearness relief for central government employees and pensioners, effective from July 1, 2025. While this move will provide some relief, the delay in the formation of the 8th Pay Commission has raised concerns about the future benefits of employees and pensioners. According to media reports, government employees may need to wait until 2028 for full implementation of the Pay Commission, considering the timeline of previous commissions and the time it takes for implementation.
The 8th Pay Commission is expected to introduce significant changes to the salary structure of central government employees. Some of the key aspects that the commission may focus on include merging pay scales, revising fitment factors, and integrating dearness allowance with basic pay. These changes aim to simplify salary calculations, ensure better financial stability, and increase purchasing power for employees and pensioners.
