New Delhi, July 27: The central government has initiated preliminary consultations for setting up the 8th Central Pay Commission (CPC), which will revise the salary structure, allowances, and pensions of nearly 50 lakh central government employees and around 65 lakh pensioners. The commission, once constituted, is expected to come into effect from January 1, 2026.

According to reports, the Ministry of Finance has started seeking inputs from key stakeholders, including the Ministry of Defence, Ministry of Home Affairs, Department of Personnel and Training, and various state governments. Minister of State for Finance Pankaj Chaudhary confirmed in a written reply to the Lok Sabha that formal notification of the commission is awaited, following which a chairperson and members will be appointed. 8th Pay Commission Rollout Likely by Late 2026; Minimum Pay May Rise to INR 30,000: Report.

If the timeline follows the precedent set by the 7th CPC—established in 2014 and implemented from January 1, 2016—the 8th CPC may submit its report by late 2025. This would pave the way for salary revisions to take effect from the beginning of 2026. Until then, the existing salary structure will remain unchanged. 8th Pay Commission Salary Hike Update: Lower Fitment Factor May Limit Real Growth to 13%, Unions Demand Parity With 7th CPC Structure.

To mitigate inflation in the interim, the government continues to revise the Dearness Allowance (DA) twice yearly, in January and July. The DA is linked to the Consumer Price Index for Industrial Workers (CPI-IW) and is expected to continue even after the 8th CPC recommendations are implemented.

The previous 7th Pay Commission had recommended a 23.55% increase in pay, allowances, and pensions. While the 8th CPC may follow a similar model, economic challenges and inflationary trends could influence the nature of its recommendations.

Though the commission is yet to be formally constituted, early-stage consultations mark the first step toward a potentially significant financial overhaul for government employees and pensioners.

(The above story first appeared on LatestLY on Jul 27, 2025 02:23 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).