The Modi government announced the formation of the 8th Central Pay Commission (CPC) in January 2025, but progress has been minimal. Seven months on, the crucial Terms of Reference (ToR)—which define the panel’s scope—remain unfinished. No chairman or members have yet been appointed.

Key Highlights

• Terms of Reference and appointments for 8th Pay Commission remain pending over six months post-announcement.
• Implementation of the 8th CPC may extend beyond late 2026, postponing benefits for over 1 crore employees.

The Pay Commission, typically set up every decade, revises pay, pensions, and allowances for central government employees and pensioners. Employee unions have been pressing the Centre for updates, but the Finance Ministry recently stated it is still collecting feedback from ministries, state governments, and staff bodies. A formal notification will be issued only after the ToR is finalised.

If the timeline mirrors the 7th Pay Commission, which took nearly 33 months from announcement to implementation, central government employees may have to wait longer. The previous commission was announced in September 2013, received its ToR in February 2014, submitted its report in November 2015, and was implemented in June 2016 with effect from January 1, 2016.

Also Read: Union Cabinet Approves the Formation of the 8th Pay Commission

Following a similar schedule, if the ToR for the 8th CPC is issued by August 2025, recommendations might only be implemented by early 2028, though revisions could be applied retrospectively from January 1, 2026.

Current delays indicate that, much like its predecessor, the 8th Pay Commission is unlikely to meet early expectations.