Big update regarding 8th Pay Commission, may be announced soon, know what is the update?

Government employees may get good news soon. The central government may constitute the 8th Pay Commission next week. This good news may come before Bihar assembly elections. The 8th Pay Commission was announced in January this year. After this, the Central Government can provide big relief to 1 crore 18 lakh government employees.

The new pay commission will recommend pay and pension rules for about 1.18 crore central employees and pensioners. According to media reports, the government has finalized the terms of reference (ToR) of the commission, including the mandate, names of the chairperson and members. The Commission will monitor pay and pension reforms over a period of ten years and take appropriate decisions.

This step is being taken almost a year later than the Pay Commission. The commission may take 6 to 12 months to prepare its report. After the implementation of the report, its implementation will come into effect from the predetermined date January 1, 2026. Prime Minister Narendra Modi had approved the formation of the 8th Pay Commission on January 16, 2025, before the Delhi Assembly elections. The government had sought suggestions and objections from state governments and public sector undertakings (PSUs), among others, in the process.

pay commission results

After the implementation of the Pay Commission’s recommendations, there will be an increase in the salaries of the employees. Their purchasing power will also increase. But this is likely to put a financial burden on state governments, public sector companies and central universities. Because this revision in salary is done as per the decision of the Central Government. The recommendations of the Pay Commission are not binding on the Central Government. But the Central Government accepts them with some modifications. The Pay Commission makes recommendations to the government regarding salaries, allowances, pensions and other benefits of central employees.

Example of 7th Pay Commission

The 7th Central Pay Commission was constituted on 28 February 2014. 18 months time was given for this. This pay commission came into effect on 1 January 2016. It increased salaries and pensions by 23.55%. This resulted in an additional burden of approximately Rs 1.02 lakh crore (0.65% of GDP) on the government annually. This made it difficult to reduce the fiscal deficit from 3.9% to 3.5%.