8th Pay Commission terms of reference, timeline yet to be finalised; govt provides data on employees

The terms of reference and timeline for submission of the 8th Pay Commission’s report will be decided in due course, the Parliament was informed on Monday.

In a written reply to Lok Sabha, Finance Minister Nirmala Sitharaman said that as of March 1, 2025, there are around 36.57 lakh central government civilian employees and 33.91 lakh pensioners who stand to benefit from the recommendations of the 8th CPC. Defence personnel and pensioners will also be covered under the Commission’s scope.

Impact of 8th CPC

The financial implications of the pay panel’s recommendations will be known only after its report is submitted and accepted by the government, the finance minister said. Inputs on the terms of reference (ToR) have been sought from key stakeholders, including the Ministry of Defence, the Ministry of Home Affairs, the Department of Personnel & Training, and state governments.

“Impact of 8th CPC can be assessed only once the recommendations are made by 8th CPC and are accepted by the government,” she said.

The decision to set up the 8th CPC was announced in January 2025, days ahead of the Union Budget. At that time, Prime Minister Narendra Modi had said that the Commission–constituted to revise the salaries and pensions of central government employees–would focus on improving the quality of life of employees while boosting consumption and economic growth.

The government is expected to appoint a chairman and two members for the Commission soon, along with a secretary-level bureaucrat, as has been the practice in past pay panels.

The terms of reference will define the scope, objectives, and boundaries of the Commission’s work, including revisions to pay structures, allowances, and benefits for various categories of employees.

The 7th Pay Commission, which was set up in 2013 and submitted its report in 2015, had recommended a 23.55% overall hike in pay, allowances, and pensions, benefiting around one crore employees and pensioners.

Going by past trends, the 8th CPC is likely to take around a year to finalise its recommendations.

Expenditure Secretary Manoj Govil recently said that the Union Budget for 2025–26 does not account for any financial outlay related to the 8th CPC’s implementation, as the report is expected to be submitted only by 2026.

The pay panel is likely to hold extensive consultations with various stakeholders, including government employee unions, pensioners’ associations, and representatives from different services, before finalising its recommendations.