8th Pay Commission: Government Outlines Timeline, Scope And Pending Fiscal Clarity

The Ministry of Finance has provided fresh clarity on the progress of the 8th Central Pay Commission (CPC), outlining its timeline, scope, and the status of proposed changes to salaries, allowances and pensions. In a written reply to an unstarred question in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary confirmed that the government had already issued a resolution on November 3, 2025, formally constituting the 8th CPC and appointing its chairperson and members.

The minister stated that the commission has been tasked with reviewing key components of compensation, including pay structures, allowances and pension systems for central government employees. Importantly, it has been given a fixed timeline of 18 months from its constitution to submit its recommendations.

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Responding to queries raised by MP A Raja, the government also clarified that the financial implications of the commission's recommendations cannot be determined at this stage. The fiscal impact will only be assessed once the report is submitted and subsequently accepted by the government.

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The commission is currently gathering inputs from stakeholders, with the deadline for submissions to its 18-point questionnaire extended to March 31, 2026.

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While revised pay scales are tentatively expected to come into effect from January 1, 2026, the final rollout will depend on the submission and approval of the commission's report.