8th Pay Commission Latest News: Will Government Form Separate Pay Revision Committee for 8 Lakh CPSE Employees? Know What MoS Pankaj Chaudhary Said
The government has ruled out a separate Pay Revision Committee for 8 lakh CPSE employees ahead of the 2027 cycle, citing the need for "functional autonomy" based on each firm's performance. Meanwhile, the 8th Pay Commission is underway for 1 crore central staff, with recommendations due by mid-2027 and arrears expected from January 1, 2026.
New Delhi, March 10: The Union Government has officially ruled out the creation of a separate, institutional Pay Revision Committee (PRC) for employees of Central Public Sector Enterprises (CPSEs). In a written response to the Lok Sabha on March 10, 2026, Minister of State for Finance Pankaj Chaudhary clarified that there is currently no proposal to establish a dedicated body to oversee the 2027 salary revisions for the approximately 8 lakh workers in the public sector.
Parliament Raises Concerns Over Pay Disparity
The government’s stance came in response to an unstarred question from Member of Parliament Laxmikant Pappu Nishad. The inquiry focused on whether the executive branch would form a committee for CPSE staff similar to the 8th Pay Commission, which is currently reviewing salaries for central government employees. 8th Pay Commission Latest News: How To Submit Your Memorandum Online at 8cpc.gov.in Before April 30.
Nishad raised concerns regarding the lack of uniformity across different CPSEs. He argued that variations in wage revision formulas, bonuses, Performance Related Pay (PRP), and profit-sharing patterns lead to inconsistencies that may violate the principle of "equal pay for equal work".
Performance-Linked Pay vs Standardization
Defending the current system, Minister Pankaj Chaudhary stated that variations in compensation across different enterprises are a deliberate reflection of each entity's "financial capacity and performance". The Minister emphasised that while the government issues periodic uniform guidelines to ensure transparency and affordability, it also prioritises the functional autonomy of these organizations. This allows profitable CPSEs to offer higher incentives compared to those facing financial constraints, ensuring that wage hikes do not compromise the commercial viability of the enterprises.
Status of the 8th Pay Commission
While CPSE employees wait for specific 2027 guidelines, the 8th Pay Commission (CPC) is already making significant progress for over one crore central government employees and pensioners.
- Timeline: Notified in November 2025, the commission was granted an 18-month window to submit its final recommendations.
- Current Phase: The 8th CPC has issued a comprehensive 18-question survey to stakeholders, including employee unions, pensioners, and experts, to gather feedback on pay structures and allowances.
- Implementation: Although the government has not finalised an implementation date, the report is expected by mid-2027. Experts widely anticipate that any approved hikes will be applied retroactively, with arrears dating back to January 1, 2026. 8th Pay Commission: Employee Unions Demand Higher Fitment Factor, Seek ‘Family Unit’ Expansion From 3 to 5.
CPSE vs Central Government Pay
Central government employees typically follow the Central Dearness Allowance (CDA) pattern, which is updated by National Pay Commissions every ten years. In contrast, CPSE employees - ranging from non-executive staff to officers below board level - generally follow the Industrial Dearness Allowance (IDA) pattern.
Historically, the government has appointed "Ad-hoc" Pay Revision Committees for CPSEs (such as the 3rd PRC in 2016), but the latest parliamentary response suggests the 2027 cycle may be managed through existing Department of Public Enterprises (DPE) guidelines rather than a new centralized board.
(The above story first appeared on LatestLY on Mar 10, 2026 04:46 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).