8th Pay Commission Delay: Millions of central government employees and pensioners are eagerly awaiting the 8th Pay Commission. However, despite the government’s approval of its formation in January 2025, the commission has not yet been formally constituted. This delay has become a major cause of concern among employees.
What is the whole matter?
The 8th Pay Commission was announced with Cabinet approval on January 16, 2025. It is expected to come into effect from January 1, 2026. Its primary task is to recommend revisions to the pay scales, allowances, and pension rules for central government employees and pensioners. Currently, the 7th Pay Commission is in effect, which will remain in effect until 2026.
Recently, the central government provided relief to employees by announcing a 3% increase in dearness allowance (DA) and dearness relief (DR), effective from July 1, 2025. However, no update has been provided regarding the 8th Pay Commission.
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What is the reason for the delay in its formation?
Two essential elements are essential for any Pay Commission to begin its work:
Terms of Reference (ToR): This is the document that sets out the Commission’s scope, functions, and the subjects of its recommendations. The ToR has not yet been issued.
Appointment of the Chairperson and Members: The formal announcement of the appointment of the Commission’s Chairperson and at least two members is still pending.
Without the ToR and the appointment of members, the Commission cannot be considered formally established or begin its work.
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Comparison: 7th vs. 8th Pay Commission
To understand this delay, consider the example of previous commissions. The 7th Pay Commission was announced in September 2013, and its ToR and the notification for the appointment of the Chairperson were issued in February 2014. Even after the announcement of the 8th Pay Commission in January 2025, these steps have yet to be taken, indicating a delay in the formation process.
When can the Commission be implemented?
Past experience shows that it takes two to three years from the formation of a Pay Commission to the full implementation of its recommendations. According to media reports, it is estimated that it may not be possible for employees and pensioners to fully benefit from the 8th Pay Commission’s recommendations before 2028.