8th Pay Commission: Panel chairperson, members yet to be appointed; here's what govt said on delay

In a written reply in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said inputs have been sought from major stakeholders, including the Ministry of Defence, Ministry of Home Affairs, Department of Personnel & Training, and states, before notifying the 8th CPC.

“The Chairperson and Members of the 8th CPC would be appointed once the 8th CPC is notified by the Government,” he said.

Responding to questions by MPs T R Baalu and Anand Bhadauria on the delay in setting up the pay panel announced in January, the minister said implementation of revised pay scales will be taken up after the Commission submits its recommendations and these are accepted by the government.

Delay in 8th CPC resolution

The finance ministry was expected to bring in a resolution appointing the chairperson and members, along with specifying the terms of reference (ToR) defining the scope, objectives, and boundaries of the Commission’s work.

The ToR sets goals such as examining and recommending changes to the pay structure, allowances, and benefits for various categories of employees, suggesting the effective date for implementation, and considering historical and traditional parities, among others.

However, almost six months have passed since the announcement, and the formal notification appointing the chairman and members of the Commission has yet to be issued.

The ToR of the 8th CPC have also not been finalised and notified.

Lawmakers seek details on 8th CPC

With no clarity on the pay panel’s constitution, the lawmakers had sought details on whether the Pay Commission had been notified, the reasons for the delay, and the timeline for appointing its chairperson and members, along with its ToR.

Seeking a written reply in Lok Sabha, they had asked: “Will the Minister of Finance be pleased to state: (a) whether the setting up of the 8th Pay Commission for Central Government employees has been notified which was announced in January, 2025; (b) if so, the details thereof and if not, the reasons for not setting up it after lapse of six months; (c) the time by which the Chairperson and Members of the 8th CPC would be appointed along with the terms of reference of the Commission; and (d) the time by which the revised pay scales will be implemented for the employees and pensioners?”

Once constituted, the Commission is expected to hold multiple rounds of discussions with stakeholders before submitting its recommendations. The recommendations of pay panels are generally implemented for a period of 10 years.

According to a report by Ambit Capital, the 8th Pay Commission is likely to be implemented from FY27. The report estimates a salary hike of around 30-34% for government employees, leading to a potential 0.5% boost to national GDP. “In FY16, real GDP growth would have been ~200bps lower in the absence of the 7th Pay hikes. Our simulations suggest the stimulus from the 8th Pay should increase GDP growth by 30-50bps in FY27,” it said.