Preparations for the 8th Pay Commission have gained momentum as discussions progress on revising salaries and pensions for central government employees and retirees. Expenditure Secretary Manoj Govil confirmed that the commission is expected to begin its work in April 2025, pending approval from the Union Cabinet on its Terms of Reference (ToR). The Department of Personnel & Training and the Ministry of Defence will also provide input.
While the commission’s recommendations will shape future financial policies, their implementation is expected in 2026. The upcoming Union Budget will allocate funds to facilitate the commission’s work. The recommendations may also impact India’s Unified Pension Scheme (UPS).
The commission’s key focus will be revising salaries, allowances, and pensions in line with inflation. Expected recommendations include adjustments to the Dearness Allowance (DA) and other salary components.
Nearly 50 lakh government employees, including defense personnel, are expected to benefit. Reports suggest the minimum basic salary could increase from ₹18,000 to ₹51,480, offering substantial financial relief.
Historically, Pay Commissions have been established every decade to reassess government salaries and pensions. The 8th Pay Commission will follow the same mandate, bringing significant changes to employee compensation structures.
