A big update has come from the government regarding the Eighth Pay Commission. Due to its implementation, there will be a big change in the salaries, allowances and pension of central employees and pensioners. The government has taken steps towards implementing it and the Finance Ministry has started preliminary discussion for the formation of CPC. During the monsoon session of Parliament, Pankaj Chaudhary, Minister of State for Finance in a written answer in the Lok Sabha, has shared information related to this.
Minister of State for Finance cleared the picture
According to a report by PTI, the Finance Ministry has started consultation with major departments, ministries and state governments regarding the Eighth Pay Commission. These include the Ministry of Defense, Ministry of Home Affairs, Personnel and Ministry of Training and various State Governments. In a written reply in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary, while clarifying the picture, said that suggestions have been sought from all and its president and other members will be appointed after the Commission’s formal notification is issued. However, he clarified that no name has been announced yet.
When will the eighth pay commission apply?
The official recommendations of the 8th Pay Commission have not been prepared yet, but their previous commissions are expected to be implemented according to the pattern set. Significantly, the 7th Pay Commission was formed in February 2014, but its recommendations came into force from 1 January 2016. In such a situation, it is being said that the recommendations of the 8th Pay Commission may come into force from 1 January 2026, repeating this timeline. On the question of the implementation of the new Pay Commission, Pankaj Chaudhary further said that they will be implemented only after the eighth Central Pay Commission made and accepted by the government.
50 lakh employees, 65 lakh pensioners will benefit
About 50 lakh central employees and more than 65 lakh pensioners across the country will benefit from the implementation of the 8th Pay Commission. However, there will be no change in the salary or pension structure of the employees until the new Pay Commission presents its recommendations and the government gets approval. However, twice a year, the benefit of increasing dearness allowance will continue to get the benefit.
DA expected to increase by 4%
It is worth noting that the government amends the salary of employees and pensioners through dearness allowance (DA) and it is announced after reviewing it every 6 months. The DA hike is directly associated with the AICPI-IW, which is an All India Consumer Price Index for industrial workers. Dearness allowances are usually amended every year in January and July.
It is expected that DA given to employees and pensioners can reach 60% when the 8th Pay Commission is implemented. Looking at the recent reports in this regard, the AICPI-IW index in March 2025 was 143, which has reached 144 by May. In such a situation, DA-DR can increase by 3 to 4 percent. Which will be considered effective from 1 July. The government may announce in this regard in September or October.
Dearness allowance can reach 60%
In the year 2016, when the 7th Pay Commission came into force, dearness allowance was 0%, but then by January 2025 it increased to 55%. Now according to estimates, if a potential 3% DA increase in July is also available, this figure can increase to 58%. At the same time, after the next review in January 2026, it is expected to reach 60% with an increase of 2%.
