If you are anticipating the 8th Pay Commission, this information is pertinent to you. Last month, the government announced the establishment of the 8th Pay Commission, indicating that a two-member panel along with a chairman would be appointed shortly. However, the recent Union Budget revealed that the implementation of the 8th Pay Commission will not commence on January 1, 2026.
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Central government employees and pensioners had significant expectations regarding the 8th Pay Commission, hoping that Finance Minister Nirmala Sitharaman would outline a plan and budgetary provisions for salary and pension adjustments in her Union Budget 2025. Unfortunately, this did not materialize.
The current term of the 7th Pay Commission is set to conclude on December 31, 2025, leading to speculation that the 8th Pay Commission could be initiated from January 1, 2026. However, the absence of any budget allocation for it suggests that provisions will only be made in the 2026-27 budget.
What is the issue?
Media reports indicate that it may take at least a year to prepare and finalize the recommendations of the 8th Pay Commission. According to Moneycontrol, Expenditure Secretary Manoj Goel stated that the Union Budget for 2025-26 does not include any expenses related to the 8th Pay Commission, as the report is anticipated to take a minimum of one year to be finalized and approved.
The Finance Ministry is reaching out to the Ministry of Defence, Ministry of Home Affairs, and the Department of Personnel and Training for their input. The Commission’s work will kick off officially once they get feedback from these departments.
What’s the history here?
If we check out past pay commissions, they usually took over a year to come up with their recommendations. For instance, the 7th Pay Commission took more than 18 months to finish its report. So, it seems pretty safe to say that we probably won’t see the 8th Pay Commission’s recommendations until the financial year 2025-26.