8th Pay Commission implementation may get delayed till 2027 – Here’s why

Central government employees and retired staff hoping for a pay and pension increase starting in January 2026 might have to wait longer. Sources say the changes recommended by the upcoming 8th Pay Commission are expected to take more time to be put in place.

Although the commission will officially start its work in January 2026, the actual revised salaries and pensions might not come into effect until early 2027. However, when the new pay scale is finally implemented, employees and pensioners will receive back pay for the previous 12 months.

A government source familiar with the situation said the new commission might need 15 to 18 months after it's formed to finalize its recommendations. While they might issue an initial report, the full set of recommendations is not expected until the end of 2026.

Looking at how previous pay commissions worked, the government will need extra time to review and implement the recommendations after receiving the final report. This suggests that the salary and pension increases are likely to happen only in early 2027.

When will the government give the go-ahead for the Commission's work?

Reports indicate that the government's cabinet could approve the guidelines for the 8th Pay Commission next month. The government is currently in the final stages of setting up the commission, and an official announcement will be made once the cabinet gives its approval. After this, the commission can begin its work from April 2025.

The government had announced its plan to form the 8th Pay Commission on January 16, 2025. Since then, there have been discussions about the commission's working guidelines and process.

Recently, the government was asked in Parliament about the progress of these guidelines and the appointment of the commission members. In response, the government stated that the decisions regarding the commission's official announcement, its head, members, and timeline will be made "in due course."

Timeline for approving and setting up the 8th Pay Commission

The government's cabinet has already approved the formation of the 8th Pay Commission to improve the salaries and pensions of its employees and retirees. However, the appointment of the commission's chairperson and other members is still pending.

What the 8th Pay Commission will look into

So far, the employee side of the National Council of Joint Consultative Machinery (JCM) has submitted its suggestions for what the Pay Commission should consider.

The employee representatives have asked for significant changes in the current salary structure, allowances, and benefits provided to government employees and pensioners. One important suggestion is to combine some existing pay scales to simplify the salary system and address issues related to career advancement.

The government has also sought input on these matters from various departments, including the Finance Ministry, Defence Ministry, Home Affairs Ministry, and the Department of Personnel and Training (DoPT).

Consulting with employees

The Department of Personnel and Training (DoPT) had asked for suggestions from the employee side of the National Council (JCM) to finalize the working guidelines for the 8th Pay Commission. It remains to be seen how many of these suggestions the government will implement and how much attention will be paid to the demands of the employees.