In a major development that brings fresh hope for central government employees and pensioners, the preparation for the 8th Pay Commission is in full swing. According to government sources, the Terms of Reference (ToR) for the new commission will be finalized and announced within the next two to three weeks. Along with this, the names of the Chairman and other commission members will also be made public this month.

Here’s a detailed look at what’s happening:

The central government is moving swiftly towards setting up the 8th Pay Commission. Senior officials have indicated that once the Terms of Reference are released, the government will also formally announce the chairperson and other key members who will be responsible for reviewing and recommending the new salary structure for employees and pensioners.

This move signals that the government aims to complete the entire process in a time-bound manner so that the new pay scales can be implemented smoothly from January 1, 2026.

Before the formal constitution of the commission, central employees and pensioners are preparing a common memorandum to present their demands. This initiative is being coordinated by the National Council – Joint Consultative Machinery (NC-JCM).

Key highlights of the memorandum will include:

• Increase in the fitment factor

• Revision of the minimum salary

• Adjustments in pay scales and allowances

• Suggestions for promotion policies and advances

A Drafting Committee has already been set up for this purpose, headed by Shiv Gopal Mishra, Secretary General of the Staff Side (NC-JCM). The committee includes 13 members, who are elected representatives of recognized employee unions. They are expected to meet in June 2025 to finalize the memorandum.

Once the commission is formed, it will be given a timeline of at least one year to submit its report. During this period, the commission will engage with:

• Central and State Governments

• Public Sector Undertakings

• Other key stakeholders

The objective is to create a well-rounded and sustainable salary structure, keeping in mind the current economic conditions, inflation rates, and rising living costs.

Historically, pay commissions have had a significant financial impact on the government’s budget. For example:

• After the 7th Pay Commission in 2016-17, salaries and pensions rose by approximately 23.55%.

• This added an extra burden of around ₹1.02 lakh crore to the government’s annual expenditure.

A similar increase is expected with the 8th Pay Commission, making budget management a complex challenge for the government.

The 8th Pay Commission is expected to benefit:

• Around 50 lakh central government employees

• Approximately 65 lakh pensioners

• Lakhs of employees in states and union territories, as most states typically adopt the recommendations made by the Centre.

Under the 7th Pay Commission, the minimum salary was fixed at ₹18,000 per month, and the maximum salary was pegged at ₹2.5 lakh per month. The fitment factor used was 2.57.

With inflation and rising expenses taken into account, it is expected that the 8th Pay Commission will recommend a higher minimum salary and revise the fitment factor accordingly. This will help ensure better financial security for employees and pensioners alike.

The upcoming announcement regarding the 8th Pay Commission is a big relief for millions of central government employees and pensioners who have been eagerly waiting for updates. Once the commission starts its work, detailed recommendations on salaries, pensions, and allowances are expected to be finalized within a year, paving the way for a fresh salary structure starting January 2026.

Stay tuned for more updates as the official announcement is expected soon!