8th Pay Commission Alert: Good News For Employees! Govt Clears Terms For 8th Pay; Panel To Be Formed Soon

8th Pay Commission Alert: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday, approved the terms of reference for the 8th Pay Commission. The 8th Pay commission panel is likely to be formed next week.

"The composition, the terms of reference, and the time period of the 8th Central Pay Commission have been approved by the Prime Minister. This is a very important decision," said Union Minister Ashwini Vaishnaw.

He also added that the approved 8th Pay Commission's recommendation will cover nearly 50 lakh central government employees, including Defence Services Personnel, and nearly 69 lakh pensioners.

8th Pay Commission Update

As the Union Cabinet has approved the 8th Pay Commission, the revision of the salary structure is likely to impact nearly 50 lakh central government employees. During a Cabinet briefing, Union Minister Ashwini Vaishnaw stated that the commission's recommendations are expected within 18 months and could be implemented from January 1, 2026.

What is 8th Pay Commission?

The 8th Pay Commission is a government-appointed panel as it reviews current salaries of government employees and pensioners, their allowances, and benefits. The pay commission ensures that the salary remains aligned with the increasing inflation.

8th Pay Commission: How Will It Impact You?

If you are a government employee or a government department pensioner, then the 8th Pay Commission revision will increase your salary based on the surge in inflation.
In January, the Cabinet had already approved the establishment of this pay commission. Its purpose is to revise both the salaries of central government employees and the allowances for around 69 lakh pensioners. The process involves consultations with various ministries, state governments, and employee representatives.

When Will 8th Pay Commission Be Implemented?

The revised pay scales are anticipated to be implemented once recommendations from the 8th CPC are accepted by the government. Union Minister of State for Finance Pankaj Chaudhary had previously mentioned that implementation would follow after these recommendations are made and approved.

Historically, pay commissions are established every decade by the Centre to update government employee remuneration. The last commission, known as the 7th Pay Commission, was set up in February 2014, with its recommendations taking effect from January 1, 2016.

Dearness Allowance Adjustments

To address inflation's impact on salaries, central government employees receive dearness allowance (DA). This allowance is adjusted every six months based on inflation rates to help maintain purchasing power amidst rising costs.
The upcoming implementation of the 8th Pay Commission is scheduled for January 1, 2026.

8th Pay Commission Panel

The 8th Pay Commission panel is likely to be formed by next week. As per PIB press release, the commission will consist of one Chairperson; One Member (Part Time) and one Member-Secretary. The panel will make recommendations within 18 months of the date of its constitution.

The commission will consider a range of factors while giving recommendations including country's macroeconomic factors, situation of developmental expenditure and welfare measures, cost of non-contributory pension schemes, etc.