The wait for the official formation of the 8th Pay Commission seems to be coming to an end, with reports suggesting that the pay panel will be constituted next week. Reports also indicate that the Chairman of the commission has been finalised. The new move of the government is just ahead of Bihar going to the polls for the assembly on November 6. The panel will recommend the revised pay and pension norms for over 11.8 million central government employees and pensioners. Here are the details on the move after much waiting.
8th pay commission to be formally formed from next week?
8th pay commission: The Centre has likely finalised the Terms of Reference (ToR) for the 8th pay commission. It is also said that the Chairman and its members are also finalised, the Financial Express report said, quoting sources. However, there are no official confirmation on this yet.
The report also suggests that the Commission is likely to take 6–12 months to submit its report, with implementation expected to apply retrospectively from January 1, 2026. Prime Minister Narendra Modi had approved the constitution of the 8th Pay Commission on January 16, 2025, shortly before the Delhi assembly elections.
Central Government Finalises Terms of Reference (ToR) for the 8th pay commission
8th pay commission: The Terms of Reference (ToR) for the commission have been finalised after taking inputs from states and various government departments. National Council-Joint Consultative Machinery (NC-JCM) was also among the stake holders who shared the inputs for the finalising of the ToR. The ToR outlines the fitment factor and other key details related to pay revision. The pay panel was formed 10 months ago, there has been no official word yet on the finalisation of ToR.
8th pay commission: How much Arrears will they get?
Generally, when the commission is implemented, its effect should be considered from January 1, 2026. If in this case if the report is implemented in July 2027, then the employees could receive 17 months’ arrears. Government employees and the pensioners will be getting a salary increase from July 2027, plus 17 months’ arrears.
7th pay commission and its duration
The 7th Central Pay Commission was set up on February 28, 2014, with a deadline of 18 months. It was implemented on January 1, 2016, and gave government employees and pensioners a 23.55% pay and pension hike. This increased government spending by Rs 1.02 lakh crore a year, which made it difficult to bring down the fiscal deficit from 3.9% in FY16 to 3.5% in FY17.
