8th Pay Commission: Over 1.2 crore central government employees and pensioners are eagerly awaiting the Terms of Reference (ToR) for the next pay commission, which will serve as the basis for salary and pension revisions, among other welfare measures. Although the central government approved the formation of the 8th Pay Commission on January 16, 2025, it has not been formally constituted yet. Neither the chairman nor other key members have been appointed, and the Terms of Reference (ToR) have also not been finalised.
Even after almost six months, the situation remains the same. In such a situation, it would not be wrong to say that the hopes of its implementation from January 1, 2026 are now almost over. While the term of the 7th Pay Commission is ending on 31 December 2025, it now seems very difficult for the employees to get the benefit of the new pay scale on time.
What does the timeline of the last two pay commissions indicate?
Looking at the process of the last two pay commissions — 6th and 7th — it has taken an average of 2 to 2.5 years to prepare the report and implement it.
The 6th Pay Commission was constituted in October 2006 and submitted its report in March 2008. It was approved in August 2008 and implemented from 1 January 2006.
Similarly, the 7th Pay Commission was constituted in February 2014 and submitted its report in November 2015. It received Cabinet approval in June 2016 and implemented from 1 January 2016. In both cases, the recommendations took effect from the retrospective date, and the arrears were also paid in a phased manner.
Formation of 8th Pay Commission in limbo, ToR also pending
At present, the status of the 8th Pay Commission is quite incomplete. Although the government has issued a deputation circular for 35 staff posts, neither the chairperson nor the members have been announced. Also, the government is busy finalizing the ToR.
When will the new pay scale be implemented now? Know the possible timeline
If the commission is now constituted in late 2025 or early 2026, then the report will come by 2027 or 2028 and it may take another 6–8 months to implement it. That is, the new recommendations will be implemented only by 2028. Yes, if the government wants, it can make them effective from January 1, 2026 and pay the arrears, as was done last time. However, this will entirely depend on political will and fiscal situation.
| Pay Commission | Constituted On | Report Submitted On | Implemented From | Time Taken to Submit Report | Time Taken for Implementation After Report | Remarks |
|---|
| 6th Pay Commission | October 5, 2006 | March 24, 2008 | January 1, 2006 (retrospective) | ~1 year 5 months | ~5 months | Approved in Aug 2008; arrears paid in 2 installments |
| 7th Pay Commission | February 28, 2014 | November 19, 2015 | January 1, 2016 (retrospective) | ~1 year 9 months | ~7 months | Approved in June 2016; arrears paid for Jan–June 2016 |
| 8th Pay Commission (Likely) | Mid or Late 2025 (Expected) | Late 2027 or Early 2028 (Assumed) | Sometime in 2028 (with retrospective effect from Jan 1, 2026, if approved) | ~1 year 6–9 months (Assumed) | ~6–8 months (Assumed) | No official announcement as of June 2025 |
Employees’ demands: minimum wage, pension restoration and merger of DA
Suggestions have been given to the government by employee organizations, which include issues like fixing minimum wage on the basis of a 5-member family, merger of pay levels, revision of pension period every five years and restoration of commuted pension after 12 years. Apart from this, employees demand that 50% of dearness allowance (DA) be added to the basic salary.
Also read: No DA hike, pay commission benefits for retired govt employees under new rules? Here’s the truth
How much can the salary increase? Speculations are rife about the fitment factor
Meanwhile, speculations are also being made about the fitment factor. If this factor is fixed between 1.92x to 2.86x, then the basic salary can increase from Rs 18,000 to Rs 51,000. Pensioners can also get benefits under Dearness Relief and New Pension Schemes. However, until the government does not constitute the commission and approves the ToR, employees and pensioners should not expect any clarity.
Summing up…
The expectations of central employees and pensioners for salary and pension hike from January 1, 2026 do not seem to be fulfilled at the moment. Until the formation of the commission and the process of the report moves forward, only speculations can be made about the new pay scale. Employees will have to wait till a clear roadmap comes from the government.
