Budget 2025: Will FM deliver on 8th Pay Commission hopes for 1.2 crore central govt employees, pensioners?

With the Union Budget approaching, central government employees and pensioners are hopeful that Finance Minister Nirmala Sitharaman will address their demand for setting up the 8th Pay Commission. The Budget for FY 2025-26 is expected to be presented on February 1.

Ahead of the Budget each year, the finance ministry seeks suggestions and listens to demands from various sectors and groups. Representing crores of employees working in private and government sectors, trade union representatives recently met Sitharaman. During the customary pre-budget meeting, they pressed for several demands, including the establishment of the 8th Pay Commission for around 50 lakh central government employees and 67 lakh pensioners.

In the pre-Budget consultation meeting, Swadesh Dev Roye, National Secretary of the Centre of Indian Trade Unions (CITU), raised the issue of a new pay commission. The union leader demanded immediate setting up of the pay commission as it’s been more than 10 years since the 7th commission was set up.

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Also read: 8th Pay Commission Delay: Employees’ Federation plans nationwide agitation in new year – Details inside

8th Pay Commission expected to begin in 2026 as 7th Commission’s tenure ends in December 2025

The 7th Pay Commission was set up in February 2014 by the UPA government, and its recommendations were implemented starting January 2016, after the BJP-led NDA came to power. It is widely anticipated that the new pay commission’s term will begin in January 2026, as past trends — particularly those of the 4th, 5th, and 6th Pay Commissions — have followed a 10-year cycle. If this pattern continues, the tenure of the current pay commission will conclude on December 31, 2025.

Various trade unions and employees’ representatives have long been demanding the establishment of the 8th Pay Commission. Last month, the National Council (Staff Side) of the Joint Consultative Machinery (NC-JCM) wrote to the Union Cabinet Secretary, requesting the “immediate” formation of the new pay commission.

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