The Finance Ministry has put a stop to all the speculations about the Eighth Pay Commission and has made it clear that no formal proposal has been received by the government so far and neither is it being considered. With this statement, the changes in salary, allowances and pension that the central government employees, army personnel and pensioners were expecting will not be fulfilled at the moment.
Government’s Official Statement
In response to a question (Question No. 973) asked in the Rajya Sabha on 23 July 2025, Minister of State for Finance Shri Pankaj Chaudhary clearly stated that there is no proposal under consideration at present to constitute the 8th Pay Commission to change the salary, allowances and pension of central government employees.
This statement is recorded in the official records of the Rajya Sabha (Session 264, Ministry of Finance) and it makes it clear that at present the government has no plans to implement the 8th Pay Commission. This has put an end to the hopes that were being raised about the formation of a new pay commission soon.
Why the 8th Pay Commission Matters
The Pay Commission plays a critical role in revising the pay structure, Dearness Allowance (DA), and other benefits for:
- Central government employees
- Defence personnel
- Pensioners
These changes have been made so that salaries and pensions keep increasing according to inflation and the economic condition of the country. This will benefit millions of employees and their families, which will improve their income and make living easier.
Impact of the Delay
| Impact | Details |
|---|---|
| No Immediate Salary Revision | Employees will continue with existing salary and DA structures under the 7th Central Pay Commission (CPC). |
| Continued DA Hikes | Biannual DA revisions, based on the CPI-IW index, will serve as interim relief to offset inflation. |
| No Budgetary Provisions | The Union Budget 2025–26 includes no allocations for 8th CPC-related pay revisions. |
Reasons Behind the Delay
The government has postponed the announcement of the 8th Pay Commission for the time being. Experts say that the main reason behind this is the current economic situation of the country. Experts like CA Amit Rathi believe that the government wants to wait until the country’s economy becomes stronger. He says that the government will probably wait till the financial year 2026-27, so that when the economic situation becomes completely stable, the 8th Pay Commission can be implemented.
- Fiscal Burden: The government is prioritizing fiscal consolidation to manage budgetary constraints.
- Effective DA Mechanism: Regular DA hikes have partially mitigated the impact of inflation.
- Economic Uncertainty: Global economic challenges and upcoming elections may have influenced the decision to postpone.
Historical Context of Pay Commissions
In India, a Pay Commission is formed every 10 years, which reviews the salary, allowances and other facilities of government employees and suggests changes. So far 7 pay commissions have come. The 5th Pay Commission was implemented in 1996, which increased the salary by about 20 to 30 percent. After this, the 6th Pay Commission came in 2006 and it was increased by about 40%.
Then the 7th Pay Commission came into force in 2016, in which the salary was increased by about 23.5%. Every time there has been a gap of about 10 years between the commissions. Now the next i.e. 8th Pay Commission is likely to be implemented in 2026, but it has not been announced yet.
| Pay Commission | Effective Year | Basic Pay Hike | Time Gap |
|---|---|---|---|
| 5th CPC | 1996 | ~20–30% | 10 years |
| 6th CPC | 2006 | ~40% | 10 years |
| 7th CPC | 2016 | ~23.5% | 10 years |
| 8th CPC | Pending | TBD | 2026? |
What Central Employees Should Do
- Avoid Fake News: Be cautious of unverified claims about 8th CPC implementation dates.
- Follow Official Sources: Monitor updates from trusted websites like finmin.nic.in or pqars.nic.in.
Potential Interim Relief Measures
While the 8th Pay Commission remains pending, the government may explore:
- A one-time hike in the fitment factor.
- Merging DA with basic pay.
- Reviewing the pension revision formula.
Frequently Asked Questions (FAQ)
No, the Ministry of Finance has confirmed that no proposal is currently under consideration.
Yes, biannual DA revisions based on the inflation index will proceed as usual.
If the 10-year cycle continues, it may be formed around FY 2026, likely after the Lok Sabha elections.
