8th CPC: With uncertain Timeline, Implementation unlikey from January 2026.

New Delhi, February 2025 – The Union Cabinet has approved the formation of the 8th Pay Commission to revise the salaries and allowances of nearly 50 lakh central government employees and 65 lakh pensioners. However, the government has not yet provided a clear timeline for setting up the commission or implementing its recommendations.

Concerns Over Possible Delay

While the announcement has raised hopes among government employees, concerns remain about possible delays in its implementation. Union Minister Ashwini Vaishnaw assured that the commission would have enough time to complete its work. Since the announcement was made a year in advance, many expected the new pay structure to take effect as scheduled.

However, the government has yet to issue the ‘Terms of Reference’ for the 8th Pay Commission. According to an Economic Times report, this could lead to delays in finalizing and implementing salary revisions.

No Mention in Union Budget 2025

Despite several tax-related measures in the Union Budget 2025, there was no mention of financial provisions for implementing the 8th Pay Commission. This has raised concerns among employees about whether the revised pay scales will be introduced as expected.

Speaking to The Economic Times, Purnima Kamble, Senior Partner at Fox Mandal & Associates LLP, stated:
"Upon reviewing the Union Budget for 2025-26, there seems to be no allocation for the 8th Pay Commission. However, on February 4, 2025, the Minister of State for Finance confirmed that the government has approved its formation. The appointment of the chairman and members, as well as the timeline for its report, will be decided later."

Implementation Likely in 2026

Rohitaashv Sinha, Partner at King Stubb & Kasiva, Advocates & Attorneys, explained that since pay commissions generally follow a 10-year cycle, the 8th Pay Commission is expected to come into effect in 2026, following the end of the 7th Pay Commission’s term.

"There is a low possibility of the 8th Pay Commission being implemented from January 1, 2026," said Sinha. "However, since the 7th Pay Commission was enforced in 2016, the 8th Pay Commission is also likely to be implemented in 2026."

Employees May Receive Arrears

Even if the implementation is delayed, central government employees need not worry about losing salary benefits. In previous cases, the government has provided arrears to compensate for delayed implementation, ensuring that employees receive the pending salary difference once the new pay structure is applied.

What’s Next?

With no financial allocation mentioned in the budget and no clear implementation date, employees await further announcements regarding the 8th Pay Commission. The government is expected to release more details in the coming months.