As part of the festive bonanza, the Modi government reduced GST rates from the first day of Navaratri. Now, another gift in the pipeline is the official formation of the 8th Pay Commission panel, which will oversee the implementation of the revised pay, allowances, and pensions for around 1.2 crore central government employees and pensioners. The 7th Pay Commission (implemented in 2016) is currently in effect and will complete its cycle by the end of 2025.

When will the 8th pay commission panel be formed?

Sources say that the 8th pay commission panel will be formed before the Bihar polls. The Bihar Legislative Assembly election is expected to be held between November 5 and 15, 2025. Hence, the good news is that the panel will be formed in October 2025.

8th pay commission news: The government had said it would set up the 8th Pay Commission in January 2025. But the rules and member appointments are not ready yet. Now, sources say the government wants to speed up the process. Reports suggest that the chairman and members might be announced before Diwali or Chhath Puja. After that, the commission will review salaries, allowances, and pensions.

Early discussions on 8th pay commission underway

The Finance Ministry has started early discussions with important departments like Defence, Home, and Personnel. Minister of State Pankaj Chaudhary confirmed this in Parliament. The main question now is whether the government will speed up the formation of the 8th Pay Commission for the Bihar elections or follow the usual timeline.

Impact on Government employees

• The minimum pension could increase by about ₹20,500, reaching ₹25,740.
• Around 5 million central government employees and 6.5 million pensioners will benefit from the 8th Pay Commission.
• In total, about 11.5 million people will be directly impacted.
• Salaries and pensions are expected to rise by 30–34%.
• The fitment factor could be revised in the range of 1.83 to 2.86, directly affecting employees’ basic pay.
• The government has approved the 8th Pay Commission, but the formal establishment and notification of its Terms of Reference (ToR) are still pending.
• The minimum basic pay for Level 1 employees may be revised to ₹51,480.