The Government has clarified the current status of the 8th Central Pay Commission, answering whether it has started functioning and what comes next for central government employees and pensioners. In a written reply, the Minister of State for Finance said the commission was formally constituted late last year and will prepare recommendations on pay, allowances and pensions within 18 months of its formation. While the panel’s work is officially underway, detailed proposals and salary revisions are still some months away.
Commission Formed, Work to Be Completed Within 18 Months
The Government has already notified the constitution of the 8th CPC along with its Terms of Reference in a resolution dated November 3, 2025. As per the resolution, the commission is tasked with reviewing and recommending changes across central pay scales, allowances and pension arrangements for millions of government employees and retirees.
The minister’s reply in Parliament confirmed that the commission has been mandated to deliver its recommendations within 18 months of its constitution. This means the panel will likely submit its report by mid-2027, after which the Government will have to examine and decide on implementation timelines. Only after formal acceptance and notification can revised salary and pension structures take effect.
Experts and media reports have noted that even though the commission’s reference date is 1 January 2026, this should not be taken to mean that pay and pension hikes automatically apply from that date. Historical practice shows that these revisions come only once the commission’s recommendations are finalised and approved, a process that typically stretches beyond the reference year.
What Employees & Pensioners Should Expect Next
While the panel’s formation marks a key step forward, central government employees and pensioners will need to wait for the commission’s detailed report and the Government’s subsequent announcement. In the meantime, periodic dearness allowance (DA) adjustments continue under the existing pay framework.
Labour unions have expressed impatience over the pace of progress, with some issuing strike notices to press for quicker action on revisions and other demands, reflecting growing concern among government personnel about delayed pay reviews.
In summary, the 8th Pay Commission is formally in motion, but the awaited salary and pension revisions are not imminent. Central employees and pensioners should expect a phased process over the coming months as work progresses toward final recommendations.
