8th Pay Commission: State govts want parleys before final report

The Cabinet in January cleared a proposal to constitute the 8th Pay Commission

States have told the Union finance ministry that the 8th Pay Commission, once constituted, should consult them before finalising its recommendations as they will also be impacted, a senior government official said. The Cabinet cleared a proposal to constitute the 8th Pay Commission in January. Briefing reporters, Union Minister Ashwini Vaishnaw said that there will be “massive” consultations with state governments and other stakeholders in the central government and public sector units. “The government will soon appoint the chairperson and two members of the 8th Pay Commission.”

 

The official quoted earlier further said that while it took six months to constitute the 7th Pay Commission after announcement, the 8th Pay Commission will be constituted much sooner.

 

“By and large, we have received comments from all stakeholders for the terms of reference. Comments from some states are awaited. Generally states adopt the central pay commission though with some delay. States are telling us this time that the 8th Pay Commission should hear their views as well,” the official added.

 

“Unlike the finance commission, the Central Pay Commission is not obliged to conduct detailed consultation with states. A final decision on the matter has not been taken yet,” he added.

  The 8th Pay Commission is expected to take effect from January 1, 2026. It is likely to benefit around 4.5 million central government employees and 6.8 million pensioners, including defence personnel. 

 

Central pay commissions are set up every decade to evaluate and suggest modifications to pay scales, allowances, and benefits for central government employees taking into account inflation and other economic factors. 

The 7th Pay Commission had seen an expenditure increase of ₹1 trillion in 2016-17. It was established by former prime minister late Manmohan Singh on February 28, 2014. Its recommendations came into effect on January 1, 2016 under the Modi government.

 

In a post-Budget interview, Expenditure Secretary Manoj Govil had said that the impact of the 8th Pay Commission recommendations will start reflecting from 2026-27.