8th Pay Commission: Central government employees and pensioners were hoping that FM Nirmala Sitharaman in her Union Budget 2025 speech would announce the roadmap for the new pay commission and an outlay to implement their recommendations for revising salary and pension for over 1.2 crore central staff.
Expectations were also high because the Modi government last month ahead of the budget announced the 8th Pay Commission and said that the panel members would soon be appointed. The panel, with 2 members and a chairman, is expected to give its recommendations to the Centre early next year. The current 7th Pay Commission’s tenure is going to end on December 31, 2025, which triggered speculations that the new pay panel tenure might begin from January 1, 2026.
Since there was no mention of the 8th Pay Commission in the FM’s speech and no budgetary allocation either for its implementation in this budget, it is obvious that the government will in the budget 2026-27 factor in expenses that would arise on account of the revision in salaries and pensions of central government employees.
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Reports suggest new pay panel may take another year to finalise 8th Pay Commission recommendations
The Union Budget for 2025-26 has not accounted for any expenses related to the 8th Pay Commission, as the pay panel’s report is expected to take at least a year to be finalised and approved, Expenditure Secretary Manoj Govil has been quoted as saying in a Moneycontrol report.
The finance ministry has sought suggestions from the Ministry of Defence, Ministry of Home Affairs, and the Department of Personnel and Training on the commission’s terms of reference, which will need formal approval before the commission begins its work, as per the report.
As observed in the past, pay commissions take over a year to submit their recommendations. The 7th Pay Commission took more than 18 months to finalise its report and submit it to the government.
Going by what the official has said and also the absence of any mention of the 8th Pay Commission in the Budget 2025, central government employees should expect the new pay panel’s recommendations in the next financial year.
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