Six Months On, Centre Yet to Set Up 8th Pay Panel

However, six months have passed but the government is yet to constitute the panel whose recommendations are scheduled to take effect from January 1, 2026.
 
The recommendations of the new Pay Commission are expected to benefit about 50 lakh employees and 65 lakh pensioners of the Centre which includes serving and retired defence personnel. 

The delay in appointing the panel could mean that the employees will have to wait longer to get a higher pay package. Besides salaries, perks and pensions for Central government workers and pensioners are also expected to increase.

“With the finance ministry banking on increased consumption to support economic growth in the country, a higher salary level for government employees was seen as a positive measure,” a government official said.  

With another six months to come into effect, the Union Cabinet headed by Prime Minister Narendra Modi is yet to release the Terms of Reference and name the members of the panel.

The announcement of the CPC came just ahead of the Delhi Assembly elections. At the time, it was expected that the panel would be constituted by the first week of April. 

That deadline has passed without an official update. 

As things stand, the submission of the Commission’s report may now be delayed by 8 to 10 months beyond the planned implementation date.

Previous pay commissions have taken roughly 12-15 months to complete their reports. 
For context, the 7th CPC was formed in February 2014 by the former UPA government, and its recommendations were implemented in January 2016.

Who Decides?

The panel is headed by a Chairperson who by convention is a retired Supreme Court judge. The rest of the panel consists of two members, one economist of repute and a retired administrator.   

The commission also has a Member Secretary, who is typically an IAS officer, who manages the day-to-day operations and administration.

The panel will recommend changes to central government employees’ pay, perks and allowances. This will be done after taking due consideration of economic realities like inflation.