8th Pay Commission rollout: Minister clarifies status, plan for funds

Review process begins for recommendations to made for 12 mn central government workers and pensioners

 

The Eighth Central Pay Commission (CPC) has been constituted but it is not clear when its recommendations will be implemented, the government’s statement in Lok Sabha indicates.

 

Pankaj Chaudhary, Minister of State for Finance, said in a reply on Monday that the commission’s terms of reference (ToR) were notified on November 3. The terms begin the review process of pay, pensions and allowances for nearly 12 million serving and retired central government personnel.

 

The ToR gives the commission 18 months from its constitution date to submit its recommendations. This sets the broad timeline for when a report may be ready, although the minister stopped short of providing target dates for either submission or rollout.

 

Previous commissions

 

While the government has not committed to a schedule, the timelines of previous commissions provide some context. For reference:

 

7th CPC: About 2.5 years from formation to implementation.

 

6th CPC: Roughly 22 months.

 

5th CPC: Approximately 3.5 years.

 

The duration has varied widely, making it difficult to infer when the 8th CPC may come into effect.

 

Implementation date not decided

MPs specifically asked whether the commission’s recommendations would take effect from 1 January 2026, in line with past precedents. Chaudhary declined to confirm this, stating only that the implementation date will be determined by the government after it receives and reviews the commission’s recommendations.

 

Budget provision likely

On the question of whether the Union Budget for 2026–27 will set aside funds for the 8th CPC, the minister noted that the government will make suitable fiscal provisions once the recommendations are accepted. This indicates that budgetary planning will follow rather than precede the report.

 

Scope of impact and next steps

 

The commission will cover nearly 5 million central government employees and around 6.9 million pensioners. MPs also asked whether concerns regarding the perceived delay would be considered. Chaudhary said the commission will follow a defined methodology for assessing pay structures and will factor in relevant inputs during its review.

 

With the commission now operational but timelines still open-ended, employees and pensioners will be watching closely through 2026 as the 18-month window progresses