Government Initiates Key Consultations for 8th Pay Commission

The central government has taken a significant step by beginning consultations with major stakeholders, including states, the Ministry of Defence, the Ministry of Home Affairs, and the Department of Personnel and Training, for the establishment of the 8th Central Pay Commission (CPC). This move aims to revise the pay structure for nearly 50 lakh central government employees and the allowances of about 65 lakh pensioners.

What the Finance Ministry Told Parliament

In a detailed written reply to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary shared that inputs are being gathered from crucial stakeholders. He emphasized that the chairperson and members of the 8th CPC will be appointed following the government's formal notification of the commission.

Implementation Timeline and Expectations

Addressing queries about the timeline for implementing revised pay scales, Chaudhary clarified that the process would commence after the 8th CPC's recommendations are submitted and accepted by the government. Historically, pay commissions are set up every decade to adjust the remuneration of government employees, with the 8th CPC expected to take effect from January 1, 2026.

Adjusting for Inflation

To combat the effects of inflation on real income, the government revises the dearness allowance (DA) for central employees bi-annually, based on inflation index changes.