The term of the current, 7th Pay Commission is to end in 2026.
The budget of FY 2025-26 has not included any expenses incurred due to the implementation of the recommendations of the 8th Pay Commission, as it may take another year to submit and then approve the report. According to the news of Moneycontrol, Expenditure Secretary Manoj Govil has given this information. Govil also said that the Commission will start working after approving the terms of reference. He said that the previous commissions took more than a year to present the report.
Report should arrive by March 2026
According to the news, Govil is aware that the commission is set up even in the month of March 2025, so the report should come by March 2026. By the way, he also said that it can take less than a year. This is the reason why we do not see any effect of the 8th Pay Commission for FY 2026. Let me tell you, PM Modi has recently approved the formation of the Eighth Pay Commission. The term of the current, 7th Pay Commission is to end in 2026.
Additional cost after implementation of 8th Pay Commission
The expenditure secretary said that after the implementation of the 8th Pay Commission, regarding the initial estimate of the additional cost, the Commission will have to take a decision keeping in mind the circumstances that the Commission will have to face. Let me tell you, Pay Commission is formed once in 10 years to recommend changes in the salary structure of government employees. The Secretary said that there is some information about the cost under the Seventh Pay Commission, but each commission is different, the circumstances facing them are different, so the commission will have to take a decision.
Govil said that even though the recommendation of the Commission is accepted in FY 2027, it is possible that some recommendations may be effective for three months from January 1, 2026, which come in FY 2026. Although the outstanding arrears, the expenditure will be increased to 2026-27.
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