When will 8th Pay Commission be set up? Expenditure secretary Manoj Govil gives important update

8th Pay Commission latest news: When will the 8th Pay Commission be set up? That’s the question in the minds of central government employees days after the Union Cabinet cleared the move. In January this year, the PM Modi-led Cabinet had cleared the constitution of the 8th Pay Commission.
The 8th Pay Commission will determine the remuneration and benefits for central government staff, bringing potential salary increases.
More than 10 million central government workers and retirees are keenly anticipating the formation of the 8th Pay Commission, which will assess and update their core salary, allowances, pensions and other perks.
In an interview with TOI, Manoj Govil, the Expenditure Secretary, has addressed queries regarding 8th Pay Commission implementation.
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When questioned about the 8th Pay Commission's fiscal implications, considering the core salary increase implementation, he provided clarity on the timeline.
He explained that no fiscal impact is anticipated in the upcoming financial year 2025-26.
“We have estimated that there will be no fiscal impact of the pay commission in the next financial year. After the pay commission is set up, it will take some time to submit its report, which will then have to be processed by the government. So in the next financial year, we do not expect an outgo. The outgo will be there in the financial year starting April 2026,” he said.
Regarding the 8th Pay Commission's set up timeline, he indicated it could occur within two months, possibly by April. “We hope soon, may be in a couple of months, by April. 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,” he said.
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Central Pay Commissions are generally established every ten years to review and propose adjustments to compensation structures, allowances and benefits for central government staff, taking into account various economic factors including inflation rates.
The previous 7th Pay Commission, established by Prime Minister Manmohan Singh on February 28, 2014, submitted its recommendations on November 19, 2015, with implementation beginning from January 1, 2016.