8th Pay Commission: The anticipation among central government employees has come to an end with significant news ahead of Budget 2025. The Cabinet has officially approved the establishment of the Eighth Pay Commission prior to the upcoming budget. It is important to note that the current 7th Pay Commission will conclude its term on December 31, 2025, with the Eighth Pay Commission set to take effect from January 1, 2026.
7th Pay Commission will conclude its term on December 31, 2025
Reports indicate that prior to the formation of the Eighth Pay Commission, consultations will be held with state governments, public sector undertakings, and other relevant entities. The announcement regarding the chairman and two members of the Eighth Pay Commission is expected to be made shortly.
Each pay commission typically has a tenure of ten years
The recommendations of the 7th Pay Commission were put into action by the Modi administration in 2016. The early establishment of the 8th Pay Commission aims to ensure that suggestions and recommendations are gathered in a timely manner. It is worth mentioning that each pay commission typically has a tenure of ten years, as seen with the fifth, sixth, and seventh pay commissions.
A new mechanism?
The creation of the new Pay Commission has put to rest speculation regarding the Modi government potentially replacing the pay panel system with a new mechanism for revising the salaries of central employees.
The 7th Pay Commission was established in February 2014 during the UPA government, but its recommendations were implemented in 2016 under the BJP-led NDA government. Given historical patterns, the formation of the new pay commission was anticipated as its recommendations are due to be enacted in January 2026.