The government has clarified the position in Parliament on the Eighth Pay Commission, which has been a topic of discussion for central employees and pensioners for a long time. In a written reply in the Rajya Sabha, the Finance Ministry has said that the commission has been formally constituted. The commission has been given 18 months to submit its recommendations. This information has come out from the government at a time when employee organizations are mobilizing for their demands and have warned of a nationwide strike on 12 February 2026.
Commission’s recommendations are expected by 2027
Minister of State for Finance Pankaj Choudhary told Parliament that the notification for the formation of the Eighth Pay Commission was issued on November 3, 2025. According to the government, the commission has been given one and a half years (18 months) to prepare its report. As per the current timeline, the commission’s recommendations are likely to come by the year 2027.
The key issues the Commission will review include:
- Pay scales of central employees and pensioners
- Allowances and pension structure.
- Comprehensive review of the terms of service.
However, the government has not yet revealed any phased roadmap or plan to implement the recommendations.
What is the government’s stance on budgetary burden?
This question was also raised prominently in the Parliament that how much additional burden will there be on the government exchequer due to the implementation of the recommendations of the new Pay Commission. On this, the Finance Ministry has clearly said that at present it is not possible to accurately estimate any cost figure.
The government says that the actual financial impact can be estimated only after the final report of the commission comes and its recommendations are accepted. That is, the budgetary provisions for the Eighth Pay Commission will be decided only after the submission of the report.
Employee organizations are increasing pressure
On one hand, the government has given procedural information, on the other hand, employee organizations have increased the pressure. The ‘Confederation of Central Government Employees and Workers’ (CCGEW) has called for a one-day nationwide strike on 12 February 2026.
The main demands of the organization are as follows:
- Interim Relief: Immediate interim relief of 20%
- Dearness Allowance: 50% DA merged into basic pay.
- Old Pension: Restoration of the Old Pension Scheme (OPS) by abolishing the New Pension Scheme (NPS).
The government’s reply in Parliament on the Eighth Pay Commission suggests that the process has started, but the recommendations will have to wait till 2027.
