Finance Ministry Updates on 8th Pay Commission and Expected Timeline

It has been almost a decade since the recommendation of the 7th pay commission was implemented, and over a crore of government employees and pensioners are anxiously waiting for the institution of the 8th pay commission.

So, has the Government of India finally made up its mind and is going to kick-start the process to initiate the 8th pay commission? Read on to know more about this.

The development can be a damper on the expectations of the employees because the Finance Ministry has categorically stated that there are no plans to institute the 8th pay commission shortly. On December 3, 2024, the Finance Ministry stated that there are no plans to institute a pay commission to revise the basic pay, allowances, pensions, and other benefits of central government employees.

Replying to a question in the Rajya Sabha, which was put forth by legislators Javed Ali Khan and Ramji Lal Suman, asking if the Central Government is thinking about making an announcement of constituting a new pay commission in the Union Budget 2025–26, which will be tabled on February 1, 2025, the minister answered in the negative.

It has been almost a decade since the last pay commission, the seventh pay commission recommendation, was accepted by the then-Manmohan Singh Government and came into effect in 2016.

The Central Pay Commission is a process that occurs every 10 years and sets a benchmark that decides the increase in central government employees’ pay, allowances, and perks. The last time this process was implemented was on February 28, 2014, by the Manmohan Singh-led UPA Government, which set up the 7th Pay Commission. The commission gave its recommendation on November 19, 2015, and, after acceptance, it came into effect on January 1, 2016.

Therefore, going by past precedent, the 8th Central Pay Commission recommendations, if instituted, will be effective from January 1, 2026, onwards. However, the issue could once again resurface during the Union Budget 2025–26, and central government employees are optimistic that the GOI will consider the institution of the 8th pay commission, taking into account the growing inflation and economic challenges.

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