8th Pay Commission Big Update: Will Pay Panel Be Set Up In April? What Will Be The Financial Ramifications? Check Reports

As lakhs of central government employees and pensioners wait for the updates on formation of the 8th Pay Commission, a Times of India report has said that it could be set up as soon as April this year.

In an interview with TOI, Expenditure Secretary Manoj Govil, has shared updates on formation of the 8th Pay Panel and also the expected economic ramifications.

He told TOI that setting up the 8th Pay Commission might occur in two months, perhaps by April. The draft terms of reference have been sent to the ministries of defense, home affairs, and DoPT for their opinions. The TOR will be framed after their opinions and recommendations are received, and the Cabinet's approval would then be requested, he added.

He clarified the timing when asked about the economic ramifications of the 8th Pay Commission in light of the implementation of the core wage hike. He told TOI that the pay commission will not have any financial effects in the upcoming fiscal year, 2025–2026.

The pay commission will take some time to submit its report after it is set up, and the government would then need to process it. Therefore, an outgo is not expected in the upcoming fiscal year. He said the outgo will be present in the fiscal year beginning in April 2026, Govil told TOI.

The Union cabinet led by Prime Minister Narendra Modi on 16 January 2025 approved setting up the 8th Pay Commission to revise salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners.

Since 1947, seven pay commissions have been formed. The 7th Pay Commission came into effect in 2016. Its tenure will conclude in 2026.

The process will involve wide consultations with state governments, the Central government, PSUs and different stakeholders. Union Minister Ashwini Vaishnav had previously said that a chairman and two members will also soon be appointed for the commission.