No 8th Pay Commission? Govt working on ‘new mechanism’ for pay revision

In what could be a significant blow to millions of central government employees and pensioners, the Centre may forgo the establishment of the 8th Pay Commission altogether, potentially ending the long-standing pay panel system. This development, revealed by a reliable source, has sparked concern and unrest among government employees and their unions.

The Modi government had implemented the 7th Pay Commission's recommendations in January 2016, with its term expected to conclude on December 31, 2025. Historically, previous pay commissions—the 4th, 5th, and 6th—each had a tenure of 10 years. This pattern led employees to expect the formation of the 8th Pay Commission. However, the government has emphasized that the timeline for setting up pay panels is not fixed. The possibility of a new mechanism for salary and pension revisions is now causing heightened anxiety among central government employees.

According to an insider familiar with recent discussions between the government and employee representatives, "The government is contemplating an alternative system for revising salaries and pensions for central employees and pensioners instead of establishing another pay commission."

Government's Stand on the 8th Pay Commission

In a statement to Parliament, Minister of State for Finance Pankaj Chaudhary clarified that there is currently no proposal under consideration for forming the 8th Central Pay Commission. Consequently, discussions regarding any timeline for its formation are moot.

This official stance has further fueled discontent among employees. Many see the move as a deviation from the established practice of setting up pay commissions approximately every decade.

Growing Unrest Among Employees

The All India State Government Employees Federation has responded strongly, announcing plans to launch a nationwide agitation in the new year if their demands for the 8th Pay Commission are not addressed. The employees' collective frustration is building as uncertainty persists.

Adding to the pressure, the National Council (Staff Side) Joint Consultative Machinery (NC JCM) recently intensified its demand for the immediate formation of the 8th Pay Commission. In a letter dated December 3 to the Union Cabinet Secretary, the NC JCM highlighted that it has been nine years since the implementation of the 7th Pay Commission's recommendations. They underscored that the next wage and pension revision is due from January 1, 2026, urging swift government action.

What Lies Ahead for Government Employees?

With the government exploring alternatives to the traditional pay commission model, central government employees are left wondering about their financial future. While details of the new mechanism remain unclear, employees are bracing for a prolonged struggle to secure fair wage and pension revisions.

The coming months could witness intensified protests and growing demands for clarity. Whether the government will reconsider its stance or proceed with a new system remains to be seen. One thing is certain—millions of government employees and pensioners are closely watching every move, hoping for a resolution that safeguards their financial stability.