8th Pay Commission: Reports Hint At Expected Timeline Of Implementation; Check Comparison Between 6th And 7th CPC Timeline

The Central Pay Commission is anticipated to be implemented later in 2026 or in the first part of 2027, according to a Business Today report that cited a Kotak projection. According to a study released by Kotak Institutional Equities said on Monday, the 8th Pay Commission will be put into effect.

According to the Business Today report citing the Kotak projection, the 8th Pay Commission is expected to raise the minimum pay from the current Rs 18,000 to around Rs 30,000. 

The CPC may also take into account the fitment factor of 1.8, the Kotak report said. Accordingly, the real pay hike will be approximately 13 percent, the report added. Additionally, the fiscal impact of the 8th CPC on the national exchequer is likely to be around 0.8 percent of the GDP, the Kotak report said. This amounts to an extra expenditure approximately between Rs 2.4 and Rs 3.2 lakh crore.

More than 1.2 crore central government employees and pensioners are eagerly awaiting the formation of the 8th Pay Commission which will revise their salaries and pensions. The Staff Side has appealed to the government to issue clear guidelines on the finalized ToRs of the 8th CPC at the earliest, to dispel any ambiguity and restore confidence among the workforce. The Staff Side further requested the government to clarify that the benefits of pay fixation and revision under the 8th CPC shall also be extended to all central government pensioners, thereby removing doubts and ensuring parity and fairness in treatment.

Despite the government's approval on January 16, 2025, the Pay Commission has not been formally constituted. The ToR and the appointment of the chairman and other important members have also not yet been completed. The anxiety of central government employee is further accentuated by the past comparisons of timelines of 6th and 7th Pay Commissions.

The 7th CPC was announced in September 2013 and its chairman and ToR were notified in February 2014. However, since the announcement of the 8th Pay Commission on January 16, 2025, the ToR of the Commission are still pending. The government has also not officially announced the appointment of the chairman and other members of the commission. This indicates a delay in the formation of the 8th CPC.

6th Pay Commission was formed in October 2006. The report/recommendation was sent in March 2008 and it got approval in August 2008. The Implementation of 6th pay commission was from January 1, 2006 retrospectively.

The prospects for the Commission's implementation on January 1, 2026, appear bleak. While the tenure of the 7th Pay Commission ends on 31 December 2025 and the constitution of the new Commission is in limbo. Now, comparing the timeline of 6th and the 7th pay commission the central government employees and pensioners are increasingly becoming anxious since there is no official word yet on the set up of pay panel.

In its latest circular, issued on 3 July 2025, DoPT has decided to extend the last date for submission of applications till 31.07.2025. This is the third extension that DoPT has proposed, thus possibly meaning that the applications from eligible candidates for these key posts in the pay panel has yet not been received yet. 

Earlier it DoPT had proposed to fill up the 4 posts of Under Secretary (Level 11) in the 8th Central Pay Commission (CPC) on deputation basis under the Central Staffing Scheme under D/o Expenditure. The applications were invited for the post vide circular of even number dated 22.04.2025.

The 8th Pay Commission will revise the pensions, allowances and salaries of central government employees and pensioners. It will also revise the Dearness Allowance as per inflation. The 8th Pay Commission benefits about 50 lakh central government employees, including defence personnel. It will also benefit around 65 lakh central government pensioners, including defence retirees.