Around 11.2 million central government employees and pensioners are closely watching the status of the 8th Pay Commission, expected to kick in after the 7th Pay Commission ends in December 2025. The next big question is: Will it be implemented from January 2026, or get delayed until FY 2027?
Delay Likely, Says Report
A recent report by Ambit Capital, titled “8th Pay: Will it be bang for the buck?”, indicates that the new commission could raise salaries and pensions by 30–34%, but implementation is unlikely before FY27. Based on past trends—like the 7th Pay Commission which was formed in 2014 but became effective in January 2016—a two-year lag is expected.
Notably, no allocations were made for the 8th Pay Commission in the 2025–26 Union Budget, further indicating a likely delay.
Legal and Administrative Roadblocks
According to Supreme Court Advocate Sandeep Bajaj, although the Pay Commission may be formally announced in January 2025, several crucial steps are still pending, including:
Appointment of a chairperson and committee members
Finalisation of Terms of Reference (ToR)
Budgetary and administrative planning
Bajaj also warns that the lack of momentum could lead to dissatisfaction among employees, especially in light of rising inflation and stagnant dearness allowance (DA) adjustments.
Retrospective Benefits a Possibility
Experts believe that retrospective implementation (with arrears) is still likely, meaning even if the rollout happens in FY27, the financial benefits might be backdated to January 2026.
However, delays in formal setup and lack of funding provision are clear signs that central government employees may need to wait longer than expected for concrete relief. Until then, DA hikes and other interim measures may serve as temporary buffers.
In the meantime, employees are likely to benefit from periodic Dearness Allowance (DA) hikes. The DA is typically revised twice a year (January and July), and with inflation pressures remaining high, the next DA hike is expected to be around 4% to 5%. While this brings some short-term relief, it doesn’t substitute for structural pay revision that only a new pay commission can offer.
