8th Pay Commission Implementation To Be Delayed Beyond FY27? ToR Wait Raises Questions

With the terms of reference for the 8th Pay Commission yet to be issued, concerns have been raised by stakeholders over a potential delay in the implementation of the once-in-a-decade pay bonanza for the central government employees and pensioners.

Pay commissions are generally formed once in 10 years by the government to revise the salaries of its employees and pensions of retirees. Since the 7th Pay Commission came into effect in January 2016, the stakeholders had earlier expected that January 2026 could be the targeted date of implementation for the 8th Pay Commission.

Two leaders of recognised staff forums, who spoke to NDTV Profit in May, had indicated the hike in pension and salaries might not be rolled out from Jan. 1, but likely in financial year 2026–27.

However, the delay in the government's approval for the ToR, which will serve as the broad framework for the 8th Pay Commission, has raised doubts whether the pay hike would even come into effect in FY27.

As per the precedent, pay commissions take 16–20 months to submit their reports after seeking inputs from an array of stakeholders, an employee union leader said on the condition of anonymity.

In the case of the 7th Pay Commission, the ToR gazette was issued within 156 days after the panel's formation was announced by the government. However, in case of the 8th Pay Commission, the same is yet to be issued despite over 166 days since the panel's announcement in January, the person pointed out.

The 7th Pay Commission submitted its report in 18 months and the recommendations were scrutinised by the government for around six months before they were approved.

Similarly, the 8th Pay Commission may need 18 months to formulate its report that entails the fitment factor and other modalities, and the same would require time to receive the final assent from the Centre, the union leader explained.

If the 8th Pay Commission is set up as early as next month and it ends up taking 18 months to formulate its report, then the same may end up being submitted not before February 2026. "And then, the government would need time to review it as well... So, the rollout in FY27 may be difficult. But again, it may be possible that the process is fast-tracked," the person said.

The National Council-Joint Consultative Machinery, an official forum comprising employee union leaders and bureaucrats, wrote a letter to Cabinet Secretary TV Somanathan last month over the "continued delay" in the formation of 8th Pay Commission.

NC-JCM Staff Side Secretary Shiv Gopal Mishra, in the letter dated June 18, pointed out that the ToR for the 8th Pay Commission had not been circulated despite the inputs being sought from the employee forum back in January.

"Despite the submission of suggestions and the conduct of a preliminary meeting to discuss the matter, no further communication has been received from the government in this regard. The continued delay in the formal issuance of the ToRs has led to widespread speculation and uncertainty among central government employees and pensioners alike," Mishra stated.

"In the absence of clear and timely communication, apprehensions are growing among employees about the credibility of the announcement regarding the setting up of the 8th CPC. Many fear whether this move is a genuine administrative initiative or otherwise," he added.