8th Pay Commission Timeline: The 7th Pay Commission was constituted in 2014 and its recommendations came into effect from January 1, 2016. Its term is ending in 2026. Usually every 10 years the central government constitutes a pay commission to change the salaries of its employees.
8th Pay Commission: The Union Cabinet approved the 8th Pay Commission on January 16 to revise the salaries and other allowances of central government employees. This is sure to change the salaries of central government employees as well as the pension of pensioners. This move will benefit about 50 lakh central government employees and about 65 lakh pensioners. But the budget for the financial year 2025-26 does not include any expenditure incurred from implementing the recommendations of the 8th Pay Commission.
This is because it may take another year for the pay panel to submit its report and then get it approved. Expenditure Secretary Manoj Goel said this in a recent interview with Moneycontrol. The Finance Ministry has written a letter to the Ministry of Defense and Home Affairs as well as the Department of Personnel and Training to suggest the Terms of Reference for the 8th Pay Commission. On receipt of these suggestions, the Center will approve them. Goel said that after the approval of the Terms of Reference, the Commission will start working.
It might not even take a year
According to Govil, “Previous commissions have taken more than a year to submit their reports. Even if the commission is constituted in March 2025, the report should come by March 2026. It may come in less than a year. Therefore, we do not see any impact of the 8th Pay Commission for the financial year 2026.”
The 7th Pay Commission was constituted in 2014 and its recommendations were implemented from January 1, 2016. Its term is ending in 2026. The chairman and two commission members for the 8th Pay Commission are going to be appointed soon. Usually every 10 years the central government constitutes a pay commission to change the salaries of its employees. State governments also change the salaries of their employees on the lines of the Central Pay Commission.
The commission will have to decide on the additional cost
Asked if the government has any initial estimate of the additional cost after the implementation of the 8th Pay Commission, Govil said the commission will have to decide on it keeping in mind the circumstances before it. Govil said, “We have some information about the cost under the 7th Pay Commission, but every commission is different, the circumstances they face are different. So it will have to be decided by the commission. But it is not expected to affect the budget for FY26 as well, because even if the report comes at the earliest, the budget period will probably end.”
It further said, “Even if the Commission’s recommendation is accepted in FY 2027, some of the recommendations may be implemented from January 1, 2026, for the three months that remain in FY 2026. But since they will be arrears, the expenditure will be rolled over to FY 2026-27.”
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