The central government has shared some information regarding the formation of the 8th Central Pay Commission. In response to queries asked in the Rajya Sabha during the Monsoon Session of Parliament, the Finance Ministry clarified certain aspects and the progress of the new pay panel formation. The ministry has addressed questions regarding the delay in appointing panel members and finalising the Terms of Reference (ToR).
Delay in 8th Pay Commission chairman and members’ appointment – here’s govt’s response
In response to a question in the Rajya Sabha by MP Sagarika Ghosh over the delay in the appointment of panel members and the chairman, Minister of State for Finance Pankaj Chaudhary said that the appointment will be done only after the commission is notified.
To a question about the date of issuance of official notification approving the constitution of the next pay commission, the minister replied, “It has been decided by the government to constitute the 8th Central Pay Commission (CPC). Inputs have been sought from the major stakeholders. Official notification would be issued in due course.”
Talking about the progress so far, he said that inputs have been sought from major stakeholders, including the Ministry of Defence, the Ministry of Home Affairs, the Department of Personnel & Training, and from states. “The commission will make its recommendations within the timeline that will be provided in the Terms of Reference (ToR).
Perspective: Why is the 8th Pay Commission important?
Over 1 crore central employees and pensioners of the country have been waiting for the formation of the 8th Pay Commission for a long time. The recommendations of the 7th Pay Commission were last implemented in January 2016. A new pay panel is formed every 10 years to suggest revisions in salaries and pensions of central government employees and pensioners, keeping in consideration the economic realities of the time. Continuing the trend, the central government in January this year announced the 8th Pay Commission since the term of the 7th Pay Commission is coming to an end on December 31, 2025.
In such a situation, central government employees were expecting that the appointment of members and ToR finalisation would be faster this time, and probably the recommendations of the new pay panel would be implemented at least by mid-2026. Though the 8th Pay Commission term was originally scheduled to start from January 2026. Now, with just 5 more months remaining before the 7th pay panel term ends, it can be said that the new pay commission’s recommendations might be implemented by mid-2027 or early 2028. It was also seen with previous pay commissions that their recommendations got implemented with significant delays of up to 24 months. However, the employees and pensioners received a hike retrospectively with arrears from the original scheduled date of implementation of the pay commissions.
Summing up…
The central government’s position on the 8th Pay Commission is now clearer than ever. The formation of the commission has been finalised, inputs are being received from stakeholders, and the next big step will be the notification of the commission and the appointment of members. Central employees are eagerly awaiting any update related to this, especially when the debate on dearness allowance (DA) and pension reforms is also in full swing.
