New Delhi
A big news has come out for crores of central employees and pensioners across the country. The central government has taken initial steps towards implementing 8th Pay Commission. With its implementation, significant changes in the salaries, allowances and pension of employees and pensioners will be seen. Finance Ministry has started initial discussions with major ministries, departments and state governments for the formation of the Central Pay Commission. This information was shared by Minister of State for Finance Pankaj Chaudhary in a written reply in the Lok Sabha during the monsoon session of Parliament.
Minister of State for Finance clarified the situation
According to a media report, the Finance Ministry has started consultation with various state governments including the Ministry of Defense, Ministry of Home Affairs, Personnel and Ministry of Training in relation to the Eighth Pay Commission. In his written reply in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary gave an explanation on this and said that inputs have been sought from all the parties concerned. He also informed that after the release of the formal notification of the Commission, its chairman and other members will be appointed. No name has been announced yet.
When will the eighth pay commission be applicable?
Official recommendations of the 8th Pay Commission have not been prepared. It is expected that they will be implemented according to the pattern set by the previous pay commissions. Significantly, the seventh pay commission was formed in February 2014, but its recommendations were implemented from January 1, 2016. On the same lines, it is estimated that the recommendations of the 8th Pay Commission can be implemented from the beginning of January 1, 2026.
On the question of the implementation of the new Pay Commission, Pankaj Chaudhary further said that they will be implemented only after recommendations by the Eighth Central Pay Commission and accepted by the government.
50 lakh employees and more than 65 lakh pensioners will benefit
With the implementation of the eighth pay commission, about 50 lakh central employees and more than 65 lakh pensioners across the country will get direct benefit. Till the new Pay Commission submits its recommendations and they are not approved by the government, there will be no change in the salary or pension structure of the employees. They will continue to get the benefit of increasing DA twice every year.
Expectation of increase in dearness allowance up to 4%
The government amends the salary of employees and pensioners through dearness allowance (DA), which is announced every 6 months after review. The DA hike is directly connected to the AicPI-IW. Dearness allowances are usually amended every year in January and July.
It is expected that when the 8th Pay Commission is implemented, the DA to the employees and pensioners can reach 60%. According to recent reports, the AICPI-IW index was 143 in March 2025, which has reached 144 by May. In such a situation, DA and DR can increase by 3 to 4 %, which will be considered effective from July 1> The government can announce in this regard in September or October>