8th Central Pay Commission: Will It Be Constituted? Here's What Minister Said - Details

The finance ministry on December 3rd said it has no plans to constitute the 8th Pay Commission. The decision impacts over one crore central government employees. It will revise their basic pay, allowances, pensions, etc.

Minister of State in the Ministry of Finance said in a response to a Rajya Sabha question that no proposal for establishment of 8th pay commission is under consideration. The response was given when a question was posed by Javed Ali Khan and Ramji Lal Suman, both of who are legislators. They asked if the government was thinking of making an announcement about the 8th Pay Commission in the Union Budget in 2025-26, which is likely to be presented on February 1, 2025.

8th Pay Commission: When Is It Due?

The Central Pay Commission assesses changes every ten years to the allowances, pay, and perks of central government employees. On February 2014, the then-Prime Minister Manmohan Singh constituted the seventh pay commission, which eventually came into effect on January 1, 2016. The demands for the 8th Central Pay Commission were raised in Budget 2024-25. So far, there has been no clarification about the implementation date, but speculations suggest it will be implemented in January 2026.

8th Central Pay Commission (8th CPC): Likely Changes

If brought into effect, the 8th Central Pay commission will multiply 2.86 times the original salary amount of central government employees, as proposed by the National Council of the Joint Consultative Machinery (NC-JCM). The multiplier used to calculate salary is called fitment amount.

Just for instance thus, if the fitment amount is 2.86, then basic salary will increase from Rs 18,000 to Rs 51,480. If the minimum pension amount is Rs 9000, it will increase to 25,740. There will also be a revision of dearness allowance and other perks which is given to central government employees once the 8th CPC is implemented.

8th CPC: Will UPS change too?

The Unified Pension Scheme (UPS) is set to be implemented from April 1, 2025. The salary under this scheme is calculated 12 months prior to retirement. Under the 8th pay commission, UPS will change too.