8th Pay Commission Update: Finance Ministry Confirms No Plans for Immediate Implementation

The central government has dealt a significant setback to over one crore central employees and pensioners in the country. For many years, these individuals have been waiting for the establishment of the Eighth Pay Commission. However, on December 3, 2024, the Finance Ministry announced that there are currently no plans to implement the Eighth Pay Commission.

What did the Finance Ministry say?

Rajya Sabha MPs Javed Ali Khan and Ramji Lal Suman inquired whether the central government intends to announce a new Pay Commission in the Union Budget for 2025-26, which will be presented on February 1, 2025. In response, Minister of State for Finance Pankaj Chaudhary stated in the Rajya Sabha that there is no proposal for the establishment of the Eighth Central Pay Commission currently under consideration by the government.

Longstanding employee demands

The 7th Pay Commission revised the pay structure, allowances, and pensions; prioritizing pay parity. As a result, central employees and pensioners have been advocating for the Eighth Pay Commission. There had been expectations for its establishment for some time, but the government’s recent announcement has disappointed many. For now, the government has confirmed that a new Pay Commission will not be formed.

When will the Eighth Central Pay Commission take effect?

Typically, the Central Pay Commission is established every 10 years to evaluate the pay, allowances, and benefits of central government employees and recommend changes based on factors such as inflation. The 7th Central Pay Commission was constituted by former Prime Minister Manmohan Singh on February 28, 2014, and its results were presented on November 19, 2015. The recommendations from the 7th Central Pay Commission were implemented in January 2016. The Eighth Central Pay Commission is anticipated to take effect on January 1, 2026, following the usual 10-year cycle.