8th Pay Commission Approved: A major update has arrived for central government employees awaiting the 8th Pay Commission. The central government has approved the Terms of Reference (TOR) for the 8th Pay Commission. This will benefit 5 million central government employees and 6.9 million pensioners. Union Cabinet Minister Ashwini Vaishnav said that the 8th Pay Commission is likely to be implemented from January 1, 2026.

#WATCH | Delhi: The Union Cabinet, chaired by PM Modi, approved the Terms of Reference of the 8th Central Pay Commission.

Union Minister Ashwini Vaishnaw says, “The composition, the terms of reference, and the time period of the 8th Central Pay Commission have been approved by… pic.twitter.com/srQ5UYMk9N

— ANI (@ANI) October 28, 2025

The Commission has been given 18 months.
The decision was taken at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi. The Commission will be a temporary body consisting of a Chairperson, a part-time Member, and a Member-Secretary. The Commission will be required to submit its recommendations within 18 months. If necessary, the Commission may also submit interim reports in some cases.

What is ToR?
Under the Terms of Reference (ToR) of the 8th Pay Commission, the Commission will have to examine whether the salaries, allowances, and other benefits provided to central government employees and pensioners are appropriate in light of current circumstances. The Commission will also have to consider the country’s economic situation, budget constraints, and the impact on state governments. It will also have to understand the benefits available to employees in private and government companies.

When was the 7th Pay Commission implemented?
The Central Government constitutes a Pay Commission every 10 years to revise the salaries of government employees. The last 7th Pay Commission was constituted in 2014, and its recommendations were implemented from January 1, 2016. This time, Justice Ranjana Prakash Desai has been appointed as the Chairperson of the 8th Pay Commission, while Professor Pulak Ghosh of IIM Bangalore and Pankaj Jain, Secretary of the Ministry of Petroleum and Natural Gas, have been appointed as members.

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8th Pay Commission: Lakhs of central employees and pensioners are waiting for the 8th Pay Commission. The government has made the announcement but its board members have not been formed yet. In such a situation, the question arises that what are the reasons due to which the 8th Pay Commission is getting delayed. Let us know the reasons due to which there is disappointment on the faces of the employees.

Major reasons for the delay in the 8th Pay Commission

1. Appointment of members and chairman pending
2. Terms of reference not prepared yet
3. No budget provision for the 8th Pay Commission

These are the major reasons due to which the members of the 8th Pay Commission have not been constituted yet. The government had announced its formation in January 2025 itself. But it has not been decided yet which members will be kept in this commission. Neither has its chairman been appointed. We can also consider this as a major reason for the delay in the 8th Pay Commission.

Forming a pay commission is a very complicated and lengthy process. First its members are appointed. Till now even the Term of Reference (ToR) of the 8th Pay Commission has not been prepared. This means the scope of work, what things need to be done. We can consider this as one of the reasons for the delay in the 8th Pay Commission .

There has been no budgetary provision for the 8th Pay Commission till now. The Pay Commission puts a heavy burden on the government. Even after the formation of the 7th Pay Commission, an additional burden of thousands of crores of rupees had increased on the government treasury. In such a situation, keeping the economy in mind, budgetary provision has to be made for this as well. We can also consider this as a reason for the delay in the 8th Pay Commission.

When can the 8th Pay Commission be implemented?
It may take about 3 years for the 8th Pay Commission to be implemented. That is, it may be implemented by 2028. Because after the announcement of the 7th Pay Commission, it took almost the same time for it to be implemented. That is, now central employees may have to wait for a long 3 years.

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If this happens, the commission will start its work from April. The ministry has also sought recommendations from the Department of Defence and Home Affairs and the Department of Personnel and Training (DoPT). Once the commission is constituted, it will review the pay structure. After this, they will give their recommendations on the pay structure. The recommendations will go to the Cabinet.

The Finance Ministry has already received a lot of feedback on the terms of reference. Now it is also waiting for a final feedback. According to sources, they have received a lot of inputs regarding the 8th Pay Commission. Some of them are still pending. It will be sent to the Cabinet for approval by the end of this month or early next month.

The 8th Pay Commission will be implemented from March 2026.

The 8th Pay Commission will be implemented after the finalization of the rules. If it is made by the end of this month, it will be effective till March 2026. However, this entire process will take less than a year. The previous Pay Commission also took a year.

Formation of the 8th Pay Commission

The government approved the formation of the 8th Pay Commission in January 2025, which will review the salaries and allowances of government employees. The pension structure of pensioners will also be considered. The commission will make recommendations taking into account inflation, economic growth and financial conditions. A new Pay Commission is usually formed after every 10 years.

Who will benefit?

65 lakh pensioners – Government pensioners will get the benefit of the new pay structure.

50 lakh central government employees – across various ministries, departments and

Employees of public sector undertakings (PSUs) will benefit. Salaries and allowances of defence personnel – Army, Navy and Air Force employees will be improved.

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