Mumbai, February 11: Days after the Narendra Modi-led Union Cabinet cleared the move to form the 8th Pay Commission, central government employees eagerly await its formation. Last month, Prime Minister Narendra Modi approved setting up the 8th Pay Commission to revise the salaries of nearly 50 lakh central government employees and the allowances of about 65 lakh pensioners. Since the announcement, there has been no update on the formation of the 8th CPC.

After the Union Government's decision, PM Narendra Modi said that the government's decision to form the eighth pay commission will boost consumption and improve the quality of life. Speaking to The Times of India, Manoj Govil, the Expenditure Secretary, clarified doubts regarding the implementation of the 8th Pay Commission. Govil said that there will be no fiscal impact in the upcoming financial year 2025-26. 8th Pay Commission: Will Govt Merge Pay Scales for Level 1–6 Employees? Here’s What the New Proposal Says.

When Will the Centre Form 8th Pay Commission?

He also clarified that the outgo will be there in the financial year starting April 2026. The Expenditure Secretary further said that the 8th CPC set-up is likely to occur within two months, possibly by April 2025. "We have asked the ministry of home affairs, defence and DoPT for their views on the draft terms of reference. Once we get their views and suggestions then the TOR will be framed, and approval will be sought from the Cabinet," Govil added.

It must be noted that the 8th Pay Commission will decide the remuneration and benefits for central government employees, thus bringing potential salary increases. Every 10 years, a new pay commission is established to review and propose adjustments to compensation structures, allowances and benefits for central government employees. The commission takes into account various economic factors, including inflation rates. 8th Pay Commission Approved: Cabinet’s Decision on 8th CPC Will Improve Quality of Life, Says PM Narendra Modi.

The current 7th Pay Commission was established by former Prime Minister Manmohan Singh on February 28, 2014. The commission submitted its recommendations on November 19, 2015 and the same was implemented from January 1, 2016.

(The above story first appeared on LatestLY on Feb 11, 2025 08:49 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).