8th Pay Commission: The term of the commission will officially begin from January 2026, but the revised salary and pension changes may not come into effect until early 2027, according to sources. However, whenever the new pay scale comes into effect, employees and pensioners will get 12 months of arrears, they said.
8th Pay Commission: Salary and pension hike likely to be implemented from 2027, not 2026
8th Pay Commission: Central government employees and pensioners who are expecting a hike in salary and pension from January 2026 may have to wait another year. This is because the recommendations of the 8th Pay Commission are likely to take more time to implement.
The commission’s term will officially begin in January 2026, but the revised salary and pension changes may not come into effect until early 2027, according to sources. However, whenever the new pay scale comes into effect, employees and pensioners will receive 12 months of arrears, they said.
According to a government source privy to the developments around the new pay panel, the new commission may finalise its recommendations within 15 to 18 months of its formation. The commission may also submit an interim report before submitting the final recommendations, but the full report will come only by the end of 2026, said another source.
Given the process of previous pay commissions, the government needs additional time for review and implementation even after the final report is submitted. This means that the salary and pension hike will be implemented only by early 2027.
When will the government approve the Terms of Reference (ToR)?
Meanwhile, according to reports, the Union Cabinet may approve the Terms of Reference (ToR) of the 8th Pay Commission next month. The government is in the final process of forming the commission, and an official notification will be issued as soon as the approval is received from the Cabinet. After this, the commission will be able to start its work from April 2025.
The government announced the formation of the 8th Pay Commission on 16 January 2025. Since then, there have been many important developments regarding the terms of reference (ToR) and process of the commission. Let us know what has happened so far and what can happen next.
Recently, the government was asked in Parliament about the status of the 8th Pay Commission ToR and also the appointment of panel members. In reply, the government said that the decision on the new pay panel’s notification, chairman, members, and timeline would be made in “due course”.
Timeline for approval and formation of the 8th Pay Commission
The Union Cabinet approved the 8th Pay Commission to improve the salaries and pensions of central government employees and pensioners. The appointment of the chairman and members of the commission, however, is yet to be decided.
8th Pay Commission’s Terms of Reference (ToR)
So far, the staff side of the National Council of Joint Consultative Machinery (JCM) has sent its recommendations for Terms of Reference.
The Staff Side in its ToR has demanded major changes in the salary structure, allowances and benefits given to government employees and pensioners. An important recommendation among these is related to the merger of some pay scales, so that the salary system can be simplified and the problems related to career growth can be removed.
The government has also sought suggestions on this subject from the Ministry of Finance, Ministry of Defence, Ministry of Home Affairs and Department of Personnel and Training (DoPT).
Consultation process with stakeholders
The Department of Personnel and Training (DoPT) had sought inputs from the staff side of the National Council (JCM) to finalise the Terms of Reference of the 8th Pay Commission. Now it remains to be seen to what extent the government implements these recommendations and how much attention it pays to the demands of the employees.
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