Government gave important information in Parliament – ​​8th Pay Commission has to submit its recommendations within 18 months.

New Delhi, 9 December. Information has been given about the Eighth Central Pay Commission (CPC) constituted to increase the salary and pension of central government employees, which also includes the scope and timeline of its implementation. Minister of State for Finance Pankaj Choudhary gave this information in written reply to the questions of some MPs in the Lok Sabha on Tuesday during the current winter session.

Central Pay Commission has been formally constituted

Pankaj Chaudhary said that the Pay Commission has been formally constituted and its Terms of Reference (ToR) were notified through a resolution of the Finance Ministry on November 3, 2025. He also said in the written reply that the 8th CPC will cover a large population of government employees and retirees. More than 50.14 lakh central government employees and about 69 lakh pensioners will come under the purview of the commission.

When will the salary of the 8th Pay Commission be implemented?,

On the question of when the new salary and benefits will be implemented, the minister said that the government will decide the date of implementation of the 8th CPC. However, the commission has to submit its recommendations within 18 months from the date of its constitution. This means by mid-2027. The government also assured that once the accepted recommendations are finalized, appropriate funds will be arranged to implement them.

The recommendations will take effect on January 1.expected from 2026

Going by the trends created by previous Pay Commissions, the recommendations of the 8th CPC are generally expected to take effect from January 1, 2026. This means that whatever change happens, even if it happens after January 2026, the changed salary will be calculated from January 2026 only, hence the necessary arrears will be paid when it comes into effect.

However, in the past the government has put several months or even years between the due date and the actual rollout. For example, the recommendations of the 7th CPC were implemented within six months of the due date, while others took longer.

Who will participate in the 8th CPC?,

In the Minister’s reply in Parliament, the mandate outlined in the notified Terms of Reference for the 8th CPC was explained in detail. These include Central Government employees (both industrial and non-industrial), All-India Services and Defense Forces employees, Union Territory employees and so on.

Possibility of increase in salary by 20-25 percent

Based on the current proposal and trend, major changes are expected in the salary structure from the 8th CPC. This increase can be up to 20–25 percent. The earlier proposal had suggested a larger increase in the minimum basic pay, perhaps reaching Rs 34,500–41,000 per month. When the new pay commission is implemented the existing Dearness Allowance (DA) is usually reset to zero. However, the government has clarified that at present there is no proposal under consideration to permanently merge the existing DA with basic pay. Higher base salary usually means more related benefits.